Correlation Between NVIDIA CDR and Enbridge Pref
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By analyzing existing cross correlation between NVIDIA CDR and Enbridge Pref 13, you can compare the effects of market volatilities on NVIDIA 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 NVIDIA CDR with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIA CDR and Enbridge Pref.
Diversification Opportunities for NVIDIA CDR and Enbridge Pref
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NVIDIA and Enbridge is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA CDR and Enbridge Pref 13 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 13 and NVIDIA 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 NVIDIA 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 13 has no effect on the direction of NVIDIA CDR i.e., NVIDIA CDR and Enbridge Pref go up and down completely randomly.
Pair Corralation between NVIDIA CDR and Enbridge Pref
Assuming the 90 days trading horizon NVIDIA CDR is expected to generate 4.78 times more return on investment than Enbridge Pref. However, NVIDIA CDR is 4.78 times more volatile than Enbridge Pref 13. It trades about 0.07 of its potential returns per unit of risk. Enbridge Pref 13 is currently generating about 0.14 per unit of risk. If you would invest 1,710 in NVIDIA CDR on November 5, 2024 and sell it today you would earn a total of 1,085 from holding NVIDIA CDR or generate 63.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.93% |
| Values | Daily Returns |
NVIDIA CDR vs. Enbridge Pref 13
Performance |
| Timeline |
| NVIDIA CDR |
| Enbridge Pref 13 |
NVIDIA CDR and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NVIDIA CDR and Enbridge Pref
The main advantage of trading using opposite NVIDIA CDR and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA 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.| NVIDIA CDR vs. Algoma Steel Group | NVIDIA CDR vs. CVW CleanTech | NVIDIA CDR vs. Gfl Environmental Holdings | NVIDIA CDR vs. Dream Industrial Real |
| Enbridge Pref vs. Ramp Metals | Enbridge Pref vs. CNJ Capital Investments | Enbridge Pref vs. XXIX Metal Corp | Enbridge Pref vs. Magna Mining |
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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