Correlation Between Sage Potash and Enbridge Pref
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By analyzing existing cross correlation between Sage Potash Corp and Enbridge Pref 13, you can compare the effects of market volatilities on Sage Potash 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 Sage Potash with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sage Potash and Enbridge Pref.
Diversification Opportunities for Sage Potash and Enbridge Pref
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sage and Enbridge is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sage Potash Corp and Enbridge Pref 13 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 13 and Sage Potash 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 Sage Potash Corp 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 13 has no effect on the direction of Sage Potash i.e., Sage Potash and Enbridge Pref go up and down completely randomly.
Pair Corralation between Sage Potash and Enbridge Pref
Assuming the 90 days trading horizon Sage Potash Corp is expected to generate 17.02 times more return on investment than Enbridge Pref. However, Sage Potash is 17.02 times more volatile than Enbridge Pref 13. It trades about 0.1 of its potential returns per unit of risk. Enbridge Pref 13 is currently generating about -0.19 per unit of risk. If you would invest 25.00 in Sage Potash Corp on December 11, 2024 and sell it today you would earn a total of 5.00 from holding Sage Potash Corp or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sage Potash Corp vs. Enbridge Pref 13
Performance |
| Timeline |
| Sage Potash Corp |
| Enbridge Pref 13 |
Sage Potash and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sage Potash and Enbridge Pref
The main advantage of trading using opposite Sage Potash and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sage Potash 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.| Sage Potash vs. Westshore Terminals Investment | Sage Potash vs. Blackrock Silver Corp | Sage Potash vs. Monument Mining Limited | Sage Potash vs. Millennium Silver Corp |
| Enbridge Pref vs. Maple Leaf Foods | Enbridge Pref vs. Plantify Foods | Enbridge Pref vs. Canlan Ice Sports | Enbridge Pref vs. CNJ Capital Investments |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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