Correlation Between National Bank and Enbridge Pref
Specify exactly 2 symbols:
By analyzing existing cross correlation between National Bank of and Enbridge Pref L, you can compare the effects of market volatilities on National Bank 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 National Bank with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Enbridge Pref.
Diversification Opportunities for National Bank and Enbridge Pref
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between National and Enbridge is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of 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 National Bank 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 National Bank of 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 National Bank i.e., National Bank and Enbridge Pref go up and down completely randomly.
Pair Corralation between National Bank and Enbridge Pref
Assuming the 90 days trading horizon National Bank is expected to generate 1.32 times less return on investment than Enbridge Pref. But when comparing it to its historical volatility, National Bank of is 1.67 times less risky than Enbridge Pref. It trades about 0.25 of its potential returns per unit of risk. Enbridge Pref L is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,181 in Enbridge Pref L on September 1, 2024 and sell it today you would earn a total of 65.00 from holding Enbridge Pref L or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
National Bank of vs. Enbridge Pref L
Performance |
| Timeline |
| National Bank |
| Enbridge Pref L |
National Bank and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Enbridge Pref
The main advantage of trading using opposite National Bank and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank 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.| National Bank vs. Gatos Silver | National Bank vs. Andlauer Healthcare Gr | National Bank vs. Bausch Health Companies | National Bank vs. Leveljump Healthcare Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |