Correlation Between Sun Peak and Enbridge Pref
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By analyzing existing cross correlation between Sun Peak Metals and Enbridge Pref 15, you can compare the effects of market volatilities on Sun Peak 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 Sun Peak with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Peak and Enbridge Pref.
Diversification Opportunities for Sun Peak and Enbridge Pref
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sun and Enbridge is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sun Peak Metals and Enbridge Pref 15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 15 and Sun Peak 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 Sun Peak Metals 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 15 has no effect on the direction of Sun Peak i.e., Sun Peak and Enbridge Pref go up and down completely randomly.
Pair Corralation between Sun Peak and Enbridge Pref
Assuming the 90 days trading horizon Sun Peak Metals is expected to under-perform the Enbridge Pref. In addition to that, Sun Peak is 15.41 times more volatile than Enbridge Pref 15. It trades about -0.03 of its total potential returns per unit of risk. Enbridge Pref 15 is currently generating about 0.18 per unit of volatility. If you would invest 1,931 in Enbridge Pref 15 on November 5, 2024 and sell it today you would earn a total of 24.00 from holding Enbridge Pref 15 or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Peak Metals vs. Enbridge Pref 15
Performance |
| Timeline |
| Sun Peak Metals |
| Enbridge Pref 15 |
Sun Peak and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Peak and Enbridge Pref
The main advantage of trading using opposite Sun Peak and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Peak 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.| Sun Peak vs. Maple Peak Investments | Sun Peak vs. Highwood Asset Management | Sun Peak vs. T2 Metals Corp | Sun Peak vs. Air Canada |
| Enbridge Pref vs. T2 Metals Corp | Enbridge Pref vs. Osisko Metals | Enbridge Pref vs. VIP Entertainment Technologies | Enbridge Pref vs. Calibre Mining 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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