Correlation Between SPTSX Dividend and Enbridge Pref
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Enbridge Pref 3, you can compare the effects of market volatilities on SPTSX Dividend 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 SPTSX Dividend with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Enbridge Pref.
Diversification Opportunities for SPTSX Dividend and Enbridge Pref
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPTSX and Enbridge is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Enbridge Pref 3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 3 and SPTSX Dividend 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 SPTSX Dividend Aristocrats 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 3 has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Enbridge Pref go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Enbridge Pref
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to under-perform the Enbridge Pref. But the index apears to be less risky and, when comparing its historical volatility, SPTSX Dividend Aristocrats is 1.02 times less risky than Enbridge Pref. The index trades about -0.29 of its potential returns per unit of risk. The Enbridge Pref 3 is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,847 in Enbridge Pref 3 on October 12, 2024 and sell it today you would earn a total of 49.00 from holding Enbridge Pref 3 or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Enbridge Pref 3
Performance |
| Timeline |
SPTSX Dividend and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Enbridge Pref 3
Pair trading matchups for Enbridge Pref
Pair Trading with SPTSX Dividend and Enbridge Pref
The main advantage of trading using opposite SPTSX Dividend and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend 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.| SPTSX Dividend vs. Arizona Gold Silver | SPTSX Dividend vs. CVS HEALTH CDR | SPTSX Dividend vs. SalesforceCom CDR | SPTSX Dividend vs. Capstone Mining Corp |
| Enbridge Pref vs. Marimaca Copper Corp | Enbridge Pref vs. Pace Metals | Enbridge Pref vs. Metalero Mining Corp | Enbridge Pref vs. Homerun Resources |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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