Correlation Between Stroud Resources and Enbridge Pref
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By analyzing existing cross correlation between Stroud Resources and Enbridge Pref 5, you can compare the effects of market volatilities on Stroud Resources 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 Stroud Resources with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stroud Resources and Enbridge Pref.
Diversification Opportunities for Stroud Resources and Enbridge Pref
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stroud and Enbridge is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Stroud Resources and Enbridge Pref 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 5 and Stroud Resources 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 Stroud Resources 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 5 has no effect on the direction of Stroud Resources i.e., Stroud Resources and Enbridge Pref go up and down completely randomly.
Pair Corralation between Stroud Resources and Enbridge Pref
Assuming the 90 days horizon Stroud Resources is expected to generate 36.17 times more return on investment than Enbridge Pref. However, Stroud Resources is 36.17 times more volatile than Enbridge Pref 5. It trades about 0.05 of its potential returns per unit of risk. Enbridge Pref 5 is currently generating about 0.24 per unit of risk. If you would invest 6.00 in Stroud Resources on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Stroud Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Stroud Resources vs. Enbridge Pref 5
Performance |
| Timeline |
| Stroud Resources |
| Enbridge Pref 5 |
Stroud Resources and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stroud Resources and Enbridge Pref
The main advantage of trading using opposite Stroud Resources and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stroud Resources 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.| Stroud Resources vs. Faction Investment Group | Stroud Resources vs. Highwood Asset Management | Stroud Resources vs. Brookfield Investments | Stroud Resources vs. Canadian General Investments |
| Enbridge Pref vs. Overactive Media Corp | Enbridge Pref vs. Postmedia Network Canada | Enbridge Pref vs. Richelieu Hardware | Enbridge Pref vs. East Side Games |
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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