Correlation Between Pembina Pipeline and E Split
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline and E Split at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Pembina Pipeline and E Split into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembina Pipeline Corp and E Split Corp, you can compare the effects of market volatilities on Pembina Pipeline and E Split 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 Pembina Pipeline with a short position of E Split. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and E Split.
Diversification Opportunities for Pembina Pipeline and E Split
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pembina and ENS is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and E Split Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Split Corp and Pembina Pipeline 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 Pembina Pipeline Corp are associated (or correlated) with E Split. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Split Corp has no effect on the direction of Pembina Pipeline i.e., Pembina Pipeline and E Split go up and down completely randomly.
Pair Corralation between Pembina Pipeline and E Split
Assuming the 90 days trading horizon Pembina Pipeline is expected to generate 5.03 times less return on investment than E Split. But when comparing it to its historical volatility, Pembina Pipeline Corp is 1.29 times less risky than E Split. It trades about 0.06 of its potential returns per unit of risk. E Split Corp is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,309 in E Split Corp on August 29, 2024 and sell it today you would earn a total of 66.00 from holding E Split Corp or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembina Pipeline Corp vs. E Split Corp
Performance |
| Timeline |
| Pembina Pipeline Corp |
| E Split Corp |
Pembina Pipeline and E Split Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and E Split
The main advantage of trading using opposite Pembina Pipeline and E Split positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline position performs unexpectedly, E Split 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 E Split will offset losses from the drop in E Split's long position.| Pembina Pipeline vs. Pembina Pipeline Corp | Pembina Pipeline vs. Pembina Pipeline Corp | Pembina Pipeline vs. Pembina Pipeline Corp | Pembina Pipeline vs. Pembina Pipeline Corp |
| E Split vs. Canadian Natural Resources | E Split vs. Suncor Energy | E Split vs. iShares Canadian HYBrid | E Split vs. Altagas Cum Red |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |