Correlation Between International Business and ENBRIDGE
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By analyzing existing cross correlation between International Business Machines and ENBRIDGE INC 45, you can compare the effects of market volatilities on International Business and ENBRIDGE 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 International Business with a short position of ENBRIDGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and ENBRIDGE.
Diversification Opportunities for International Business and ENBRIDGE
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and ENBRIDGE is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and ENBRIDGE INC 45 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENBRIDGE INC 45 and International Business 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 International Business Machines are associated (or correlated) with ENBRIDGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENBRIDGE INC 45 has no effect on the direction of International Business i.e., International Business and ENBRIDGE go up and down completely randomly.
Pair Corralation between International Business and ENBRIDGE
Considering the 90-day investment horizon International Business Machines is expected to generate 3.25 times more return on investment than ENBRIDGE. However, International Business is 3.25 times more volatile than ENBRIDGE INC 45. It trades about 0.22 of its potential returns per unit of risk. ENBRIDGE INC 45 is currently generating about 0.2 per unit of risk. If you would invest 22,318 in International Business Machines on November 9, 2024 and sell it today you would earn a total of 3,026 from holding International Business Machines or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
International Business Machine vs. ENBRIDGE INC 45
Performance |
| Timeline |
| International Business |
| ENBRIDGE INC 45 |
International Business and ENBRIDGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and ENBRIDGE
The main advantage of trading using opposite International Business and ENBRIDGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, ENBRIDGE 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 will offset losses from the drop in ENBRIDGE's long position.| International Business vs. EPAM Systems | International Business vs. Infosys Ltd ADR | International Business vs. Cognizant Technology Solutions | International Business vs. FiscalNote Holdings |
| ENBRIDGE vs. One Group Hospitality | ENBRIDGE vs. Braemar Hotels Resorts | ENBRIDGE vs. Sweetgreen | ENBRIDGE vs. Boyd Gaming |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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