Correlation Between Canlan Ice and Enbridge Pref
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By analyzing existing cross correlation between Canlan Ice Sports and Enbridge Pref 11, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Enbridge Pref.
Diversification Opportunities for Canlan Ice and Enbridge Pref
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canlan and Enbridge is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Enbridge Pref 11 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 11 and Canlan Ice 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 Canlan Ice Sports 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 11 has no effect on the direction of Canlan Ice i.e., Canlan Ice and Enbridge Pref go up and down completely randomly.
Pair Corralation between Canlan Ice and Enbridge Pref
Assuming the 90 days trading horizon Canlan Ice Sports is expected to under-perform the Enbridge Pref. In addition to that, Canlan Ice is 4.15 times more volatile than Enbridge Pref 11. It trades about -0.12 of its total potential returns per unit of risk. Enbridge Pref 11 is currently generating about 0.55 per unit of volatility. If you would invest 1,941 in Enbridge Pref 11 on October 22, 2024 and sell it today you would earn a total of 84.00 from holding Enbridge Pref 11 or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. Enbridge Pref 11
Performance |
| Timeline |
| Canlan Ice Sports |
| Enbridge Pref 11 |
Canlan Ice and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Enbridge Pref
The main advantage of trading using opposite Canlan Ice and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. BMTC Group | Canlan Ice vs. Caldwell Partners International | Canlan Ice vs. TWC Enterprises | Canlan Ice vs. Madison Pacific Properties |
| Enbridge Pref vs. Air Canada | Enbridge Pref vs. Dominion Lending Centres | Enbridge Pref vs. CI Financial Corp | Enbridge Pref vs. Canso Credit Trust |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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