Correlation Between Enbridge and Till Capital
Can any of the company-specific risk be diversified away by investing in both Enbridge and Till Capital 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 Till Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enbridge and Till Capital, you can compare the effects of market volatilities on Enbridge and Till Capital 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 Till Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge and Till Capital.
Diversification Opportunities for Enbridge and Till Capital
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enbridge and Till is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge and Till Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Till Capital 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 Till Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Till Capital has no effect on the direction of Enbridge i.e., Enbridge and Till Capital go up and down completely randomly.
Pair Corralation between Enbridge and Till Capital
Assuming the 90 days trading horizon Enbridge is expected to generate 0.16 times more return on investment than Till Capital. However, Enbridge is 6.33 times less risky than Till Capital. It trades about 0.06 of its potential returns per unit of risk. Till Capital is currently generating about -0.02 per unit of risk. If you would invest 4,714 in Enbridge on August 24, 2024 and sell it today you would earn a total of 1,268 from holding Enbridge or generate 26.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge vs. Till Capital
Performance |
| Timeline |
| Enbridge |
| Till Capital |
Enbridge and Till Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge and Till Capital
The main advantage of trading using opposite Enbridge and Till Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge position performs unexpectedly, Till Capital 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 Till Capital will offset losses from the drop in Till Capital's long position.| Enbridge vs. Suncor Energy | Enbridge vs. Toronto Dominion Bank | Enbridge vs. Bank of Nova | Enbridge vs. BCE Inc |
| Till Capital vs. Walmart Inc CDR | Till Capital vs. Amazon CDR | Till Capital vs. UPS CDR | Till Capital vs. HOME DEPOT CDR |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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