Correlation Between Hampton Financial and Enbridge Pref
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By analyzing existing cross correlation between Hampton Financial Corp and Enbridge Pref 13, you can compare the effects of market volatilities on Hampton Financial 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 Hampton Financial with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hampton Financial and Enbridge Pref.
Diversification Opportunities for Hampton Financial and Enbridge Pref
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hampton and Enbridge is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hampton Financial Corp and Enbridge Pref 13 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 13 and Hampton Financial 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 Hampton Financial 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 13 has no effect on the direction of Hampton Financial i.e., Hampton Financial and Enbridge Pref go up and down completely randomly.
Pair Corralation between Hampton Financial and Enbridge Pref
Assuming the 90 days horizon Hampton Financial Corp is expected to generate 4.23 times more return on investment than Enbridge Pref. However, Hampton Financial is 4.23 times more volatile than Enbridge Pref 13. It trades about 0.09 of its potential returns per unit of risk. Enbridge Pref 13 is currently generating about 0.37 per unit of risk. If you would invest 41.00 in Hampton Financial Corp on October 13, 2024 and sell it today you would earn a total of 2.00 from holding Hampton Financial Corp or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Hampton Financial Corp vs. Enbridge Pref 13
Performance |
| Timeline |
| Hampton Financial Corp |
| Enbridge Pref 13 |
Hampton Financial and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hampton Financial and Enbridge Pref
The main advantage of trading using opposite Hampton Financial and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hampton Financial 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.| Hampton Financial vs. Converge Technology Solutions | Hampton Financial vs. Diamond Estates Wines | Hampton Financial vs. CVS HEALTH CDR | Hampton Financial vs. Partners Value Investments |
| Enbridge Pref vs. Hampton Financial Corp | Enbridge Pref vs. Olympia Financial Group | Enbridge Pref vs. CNJ Capital Investments | Enbridge Pref vs. Financial 15 Split |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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