Correlation Between Enerplus and Ovintiv
Can any of the company-specific risk be diversified away by investing in both Enerplus and Ovintiv 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 Enerplus and Ovintiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enerplus and Ovintiv, you can compare the effects of market volatilities on Enerplus and Ovintiv 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 Enerplus with a short position of Ovintiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerplus and Ovintiv.
Diversification Opportunities for Enerplus and Ovintiv
Pay attention - limited upside
The 3 months correlation between Enerplus and Ovintiv is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Enerplus and Ovintiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ovintiv and Enerplus 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 Enerplus are associated (or correlated) with Ovintiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ovintiv has no effect on the direction of Enerplus i.e., Enerplus and Ovintiv go up and down completely randomly.
Pair Corralation between Enerplus and Ovintiv
If you would invest (100.00) in Enerplus on November 18, 2024 and sell it today you would earn a total of 100.00 from holding Enerplus or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Enerplus vs. Ovintiv
Performance |
| Timeline |
| Enerplus |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Ovintiv |
Enerplus and Ovintiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerplus and Ovintiv
The main advantage of trading using opposite Enerplus and Ovintiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerplus position performs unexpectedly, Ovintiv 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 Ovintiv will offset losses from the drop in Ovintiv's long position.| Enerplus vs. Vermilion Energy | Enerplus vs. Canadian Natural Resources | Enerplus vs. Baytex Energy Corp | Enerplus vs. Obsidian Energy |
| Ovintiv vs. Baytex Energy Corp | Ovintiv vs. Obsidian Energy | Ovintiv vs. Canadian Natural Resources | Ovintiv vs. Vermilion Energy |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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