Correlation Between Leading Edge and Enbridge Pref
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By analyzing existing cross correlation between Leading Edge Materials and Enbridge Pref L, you can compare the effects of market volatilities on Leading Edge 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 Leading Edge with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leading Edge and Enbridge Pref.
Diversification Opportunities for Leading Edge and Enbridge Pref
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Leading and Enbridge is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Leading Edge Materials and Enbridge Pref L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref L and Leading Edge 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 Leading Edge Materials 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 L has no effect on the direction of Leading Edge i.e., Leading Edge and Enbridge Pref go up and down completely randomly.
Pair Corralation between Leading Edge and Enbridge Pref
Assuming the 90 days horizon Leading Edge Materials is expected to under-perform the Enbridge Pref. In addition to that, Leading Edge is 8.13 times more volatile than Enbridge Pref L. It trades about -0.09 of its total potential returns per unit of risk. Enbridge Pref L is currently generating about 0.04 per unit of volatility. If you would invest 2,273 in Enbridge Pref L on November 5, 2024 and sell it today you would earn a total of 9.00 from holding Enbridge Pref L or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leading Edge Materials vs. Enbridge Pref L
Performance |
| Timeline |
| Leading Edge Materials |
| Enbridge Pref L |
Leading Edge and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leading Edge and Enbridge Pref
The main advantage of trading using opposite Leading Edge and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leading Edge 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.| Leading Edge vs. Hannan Metals | Leading Edge vs. Mkango Resources | Leading Edge vs. Elcora Advanced Materials | Leading Edge vs. Midnight Sun Mining |
| Enbridge Pref vs. Andean Precious Metals | Enbridge Pref vs. Doman Building Materials | Enbridge Pref vs. Sun Peak Metals | Enbridge Pref vs. Pace Metals |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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