Correlation Between Enbridge and Computer Modelling
Can any of the company-specific risk be diversified away by investing in both Enbridge and Computer Modelling at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Enbridge and Computer Modelling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enbridge and Computer Modelling Group, you can compare the effects of market volatilities on Enbridge and Computer Modelling 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 with a short position of Computer Modelling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge and Computer Modelling.
Diversification Opportunities for Enbridge and Computer Modelling
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enbridge and Computer is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge and Computer Modelling Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Modelling and Enbridge 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 are associated (or correlated) with Computer Modelling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Modelling has no effect on the direction of Enbridge i.e., Enbridge and Computer Modelling go up and down completely randomly.
Pair Corralation between Enbridge and Computer Modelling
Assuming the 90 days trading horizon Enbridge is expected to generate 1.03 times more return on investment than Computer Modelling. However, Enbridge is 1.03 times more volatile than Computer Modelling Group. It trades about 0.07 of its potential returns per unit of risk. Computer Modelling Group is currently generating about -0.1 per unit of risk. If you would invest 6,187 in Enbridge on November 3, 2024 and sell it today you would earn a total of 98.00 from holding Enbridge or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge vs. Computer Modelling Group
Performance |
| Timeline |
| Enbridge |
| Computer Modelling |
Enbridge and Computer Modelling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge and Computer Modelling
The main advantage of trading using opposite Enbridge and Computer Modelling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge position performs unexpectedly, Computer Modelling 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 Computer Modelling will offset losses from the drop in Computer Modelling's long position.| Enbridge vs. Suncor Energy | Enbridge vs. Toronto Dominion Bank | Enbridge vs. Bank of Nova | Enbridge vs. BCE Inc |
| Computer Modelling vs. Pason Systems | Computer Modelling vs. Evertz Technologies Limited | Computer Modelling vs. Descartes Systems Group | Computer Modelling vs. Enerflex |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |