Correlation Between Enbridge Pref and Yangarra Resources
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By analyzing existing cross correlation between Enbridge Pref 5 and Yangarra Resources, you can compare the effects of market volatilities on Enbridge Pref and Yangarra Resources and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Enbridge Pref with a short position of Yangarra Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Yangarra Resources.
Diversification Opportunities for Enbridge Pref and Yangarra Resources
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enbridge and Yangarra is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Yangarra Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangarra Resources and Enbridge Pref is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Enbridge Pref 5 are associated (or correlated) with Yangarra Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangarra Resources has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Yangarra Resources go up and down completely randomly.
Pair Corralation between Enbridge Pref and Yangarra Resources
Assuming the 90 days trading horizon Enbridge Pref 5 is expected to generate 0.17 times more return on investment than Yangarra Resources. However, Enbridge Pref 5 is 5.88 times less risky than Yangarra Resources. It trades about 0.21 of its potential returns per unit of risk. Yangarra Resources is currently generating about 0.01 per unit of risk. If you would invest 2,357 in Enbridge Pref 5 on August 28, 2024 and sell it today you would earn a total of 38.00 from holding Enbridge Pref 5 or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref 5 vs. Yangarra Resources
Performance |
| Timeline |
| Enbridge Pref 5 |
| Yangarra Resources |
Enbridge Pref and Yangarra Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Yangarra Resources
The main advantage of trading using opposite Enbridge Pref and Yangarra Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Yangarra Resources can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Yangarra Resources will offset losses from the drop in Yangarra Resources' long position.The idea behind Enbridge Pref 5 and Yangarra Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Yangarra Resources vs. InPlay Oil Corp | Yangarra Resources vs. Bonterra Energy Corp | Yangarra Resources vs. Gear Energy | Yangarra Resources vs. Kelt Exploration |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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