Correlation Between INTEL CDR and Enbridge Pref
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By analyzing existing cross correlation between INTEL CDR and Enbridge Pref 5, you can compare the effects of market volatilities on INTEL CDR 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 INTEL CDR with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTEL CDR and Enbridge Pref.
Diversification Opportunities for INTEL CDR and Enbridge Pref
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTEL and Enbridge is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding INTEL CDR and Enbridge Pref 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 5 and INTEL CDR 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 INTEL CDR 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 5 has no effect on the direction of INTEL CDR i.e., INTEL CDR and Enbridge Pref go up and down completely randomly.
Pair Corralation between INTEL CDR and Enbridge Pref
Assuming the 90 days trading horizon INTEL CDR is expected to generate 9.9 times more return on investment than Enbridge Pref. However, INTEL CDR is 9.9 times more volatile than Enbridge Pref 5. It trades about 0.06 of its potential returns per unit of risk. Enbridge Pref 5 is currently generating about 0.28 per unit of risk. If you would invest 1,346 in INTEL CDR on August 30, 2024 and sell it today you would earn a total of 45.00 from holding INTEL CDR or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
INTEL CDR vs. Enbridge Pref 5
Performance |
| Timeline |
| INTEL CDR |
| Enbridge Pref 5 |
INTEL CDR and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTEL CDR and Enbridge Pref
The main advantage of trading using opposite INTEL CDR and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTEL CDR 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.| INTEL CDR vs. Eddy Smart Home | INTEL CDR vs. Constellation Software | INTEL CDR vs. Primaris Retail RE | INTEL CDR vs. HOME DEPOT CDR |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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