Correlation Between Eco Atlantic and Enbridge Pref
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By analyzing existing cross correlation between Eco Atlantic Oil and Enbridge Pref 5, you can compare the effects of market volatilities on Eco Atlantic 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 Eco Atlantic with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eco Atlantic and Enbridge Pref.
Diversification Opportunities for Eco Atlantic and Enbridge Pref
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eco and Enbridge is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Eco Atlantic Oil and Enbridge Pref 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 5 and Eco Atlantic 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 Eco Atlantic Oil 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 5 has no effect on the direction of Eco Atlantic i.e., Eco Atlantic and Enbridge Pref go up and down completely randomly.
Pair Corralation between Eco Atlantic and Enbridge Pref
Assuming the 90 days horizon Eco Atlantic Oil is expected to generate 11.33 times more return on investment than Enbridge Pref. However, Eco Atlantic is 11.33 times more volatile than Enbridge Pref 5. It trades about 0.05 of its potential returns per unit of risk. Enbridge Pref 5 is currently generating about 0.15 per unit of risk. If you would invest 18.00 in Eco Atlantic Oil on September 13, 2024 and sell it today you would earn a total of 1.00 from holding Eco Atlantic Oil or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Eco Atlantic Oil vs. Enbridge Pref 5
Performance |
| Timeline |
| Eco Atlantic Oil |
| Enbridge Pref 5 |
Eco Atlantic and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eco Atlantic and Enbridge Pref
The main advantage of trading using opposite Eco Atlantic and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eco Atlantic 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.| Eco Atlantic vs. CGX Energy | Eco Atlantic vs. Africa Oil Corp | Eco Atlantic vs. Africa Energy Corp | Eco Atlantic vs. Valeura Energy |
| Enbridge Pref vs. Rogers Communications | Enbridge Pref vs. Jamieson Wellness | Enbridge Pref vs. Bausch Health Companies | Enbridge Pref vs. Canadian General Investments |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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