Correlation Between CGX Energy and Enbridge Pref
Specify exactly 2 symbols:
By analyzing existing cross correlation between CGX Energy and Enbridge Pref 5, you can compare the effects of market volatilities on CGX Energy 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 CGX Energy with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGX Energy and Enbridge Pref.
Diversification Opportunities for CGX Energy and Enbridge Pref
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CGX and Enbridge is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding CGX Energy 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 CGX Energy 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 CGX Energy 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 CGX Energy i.e., CGX Energy and Enbridge Pref go up and down completely randomly.
Pair Corralation between CGX Energy and Enbridge Pref
Assuming the 90 days horizon CGX Energy is expected to under-perform the Enbridge Pref. In addition to that, CGX Energy is 8.48 times more volatile than Enbridge Pref 5. It trades about -0.05 of its total potential returns per unit of risk. Enbridge Pref 5 is currently generating about 0.12 per unit of volatility. If you would invest 1,806 in Enbridge Pref 5 on September 12, 2024 and sell it today you would earn a total of 585.00 from holding Enbridge Pref 5 or generate 32.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.29% |
| Values | Daily Returns |
CGX Energy vs. Enbridge Pref 5
Performance |
| Timeline |
| CGX Energy |
| Enbridge Pref 5 |
CGX Energy and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGX Energy and Enbridge Pref
The main advantage of trading using opposite CGX Energy and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGX Energy 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.| CGX Energy vs. Enbridge Pref 5 | CGX Energy vs. Enbridge Pref 11 | CGX Energy vs. Enbridge Pref L | CGX Energy vs. E Split Corp |
| Enbridge Pref vs. Enbridge Pref 11 | Enbridge Pref vs. Enbridge Pref L | Enbridge Pref vs. E Split Corp | Enbridge Pref vs. E Split 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |