Correlation Between Pembina Pipeline and Enbridge H
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By analyzing existing cross correlation between Pembina Pipeline Corp and Enbridge H Cum, you can compare the effects of market volatilities on Pembina Pipeline and Enbridge H 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 Enbridge H. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and Enbridge H.
Diversification Opportunities for Pembina Pipeline and Enbridge H
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pembina and Enbridge is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and Enbridge H Cum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge H Cum 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 Enbridge H. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge H Cum has no effect on the direction of Pembina Pipeline i.e., Pembina Pipeline and Enbridge H go up and down completely randomly.
Pair Corralation between Pembina Pipeline and Enbridge H
Assuming the 90 days trading horizon Pembina Pipeline is expected to generate 1.32 times less return on investment than Enbridge H. In addition to that, Pembina Pipeline is 1.56 times more volatile than Enbridge H Cum. It trades about 0.19 of its total potential returns per unit of risk. Enbridge H Cum is currently generating about 0.39 per unit of volatility. If you would invest 1,990 in Enbridge H Cum on October 1, 2024 and sell it today you would earn a total of 50.00 from holding Enbridge H Cum or generate 2.51% 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. Enbridge H Cum
Performance |
| Timeline |
| Pembina Pipeline Corp |
| Enbridge H Cum |
Pembina Pipeline and Enbridge H Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and Enbridge H
The main advantage of trading using opposite Pembina Pipeline and Enbridge H positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline position performs unexpectedly, Enbridge H 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 H will offset losses from the drop in Enbridge H's long position.| Pembina Pipeline vs. Enbridge Pref 11 | Pembina Pipeline vs. E Split Corp | Pembina Pipeline vs. Sage Potash Corp |
| Enbridge H vs. Enbridge Pref Series | Enbridge H vs. Enbridge Pref 13 | Enbridge H vs. Pembina Pipeline Corp | Enbridge H vs. ARC Resources |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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