Correlation Between E Split and Enbridge Pref
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By analyzing existing cross correlation between E Split Corp and Enbridge Pref L, you can compare the effects of market volatilities on E Split and Enbridge Pref 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 E Split with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Split and Enbridge Pref.
Diversification Opportunities for E Split and Enbridge Pref
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ENS and Enbridge is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding E Split Corp and Enbridge Pref L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref L and E Split 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 E Split Corp are associated (or correlated) with Enbridge Pref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge Pref L has no effect on the direction of E Split i.e., E Split and Enbridge Pref go up and down completely randomly.
Pair Corralation between E Split and Enbridge Pref
Assuming the 90 days trading horizon E Split Corp is expected to generate 1.2 times more return on investment than Enbridge Pref. However, E Split is 1.2 times more volatile than Enbridge Pref L. It trades about 0.24 of its potential returns per unit of risk. Enbridge Pref L is currently generating about 0.03 per unit of risk. If you would invest 1,309 in E Split Corp on August 27, 2024 and sell it today you would earn a total of 62.00 from holding E Split Corp or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
E Split Corp vs. Enbridge Pref L
Performance |
| Timeline |
| E Split Corp |
| Enbridge Pref L |
E Split and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Split and Enbridge Pref
The main advantage of trading using opposite E Split and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Split position performs unexpectedly, Enbridge Pref 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 Enbridge Pref will offset losses from the drop in Enbridge Pref's long position.| E Split vs. Global Dividend Growth | E Split vs. Real Estate E Commerce | E Split vs. Life Banc Split | E Split vs. Brompton Split Banc |
| Enbridge Pref vs. Canso Select Opportunities | Enbridge Pref vs. Computer Modelling Group | Enbridge Pref vs. Verizon Communications CDR | Enbridge Pref vs. Data Communications Management |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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