Correlation Between Pembina Pipeline and Emera
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By analyzing existing cross correlation between Pembina Pipeline Corp and Emera Inc, you can compare the effects of market volatilities on Pembina Pipeline and Emera 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 Emera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and Emera.
Diversification Opportunities for Pembina Pipeline and Emera
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pembina and Emera is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and Emera Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emera Inc 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 Emera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emera Inc has no effect on the direction of Pembina Pipeline i.e., Pembina Pipeline and Emera go up and down completely randomly.
Pair Corralation between Pembina Pipeline and Emera
Assuming the 90 days trading horizon Pembina Pipeline is expected to generate 1.48 times less return on investment than Emera. But when comparing it to its historical volatility, Pembina Pipeline Corp is 1.49 times less risky than Emera. It trades about 0.08 of its potential returns per unit of risk. Emera Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,303 in Emera Inc on September 23, 2024 and sell it today you would earn a total of 37.00 from holding Emera Inc or generate 1.61% 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. Emera Inc
Performance |
| Timeline |
| Pembina Pipeline Corp |
| Emera Inc |
Pembina Pipeline and Emera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and Emera
The main advantage of trading using opposite Pembina Pipeline and Emera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline position performs unexpectedly, Emera 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 Emera will offset losses from the drop in Emera's long position.| Pembina Pipeline vs. Enbridge Pref 5 | Pembina Pipeline vs. Enbridge Pref 11 | Pembina Pipeline vs. Enbridge Pref L | Pembina Pipeline vs. E Split Corp |
| Emera vs. Emera Pref F | Emera vs. Emera Srs C | Emera vs. Fortis Pref M | Emera vs. Brookfield Renewable Partners |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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