Correlation Between Trench Metals and Enbridge Pref
Specify exactly 2 symbols:
By analyzing existing cross correlation between Trench Metals Corp and Enbridge Pref 5, you can compare the effects of market volatilities on Trench Metals 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 Trench Metals with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trench Metals and Enbridge Pref.
Diversification Opportunities for Trench Metals and Enbridge Pref
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trench and Enbridge is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Trench Metals Corp 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 Trench Metals 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 Trench Metals 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 5 has no effect on the direction of Trench Metals i.e., Trench Metals and Enbridge Pref go up and down completely randomly.
Pair Corralation between Trench Metals and Enbridge Pref
Assuming the 90 days horizon Trench Metals Corp is expected to generate 33.0 times more return on investment than Enbridge Pref. However, Trench Metals is 33.0 times more volatile than Enbridge Pref 5. It trades about 0.08 of its potential returns per unit of risk. Enbridge Pref 5 is currently generating about 0.15 per unit of risk. If you would invest 53.00 in Trench Metals Corp on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Trench Metals Corp or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 75.61% |
| Values | Daily Returns |
Trench Metals Corp vs. Enbridge Pref 5
Performance |
| Timeline |
| Trench Metals Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enbridge Pref 5 |
Trench Metals and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trench Metals and Enbridge Pref
The main advantage of trading using opposite Trench Metals and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trench Metals 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.| Trench Metals vs. Baselode Energy Corp | Trench Metals vs. Standard Uranium | Trench Metals vs. Skyharbour Resources |
| Enbridge Pref vs. Rogers Communications | Enbridge Pref vs. Jamieson Wellness | Enbridge Pref vs. Bausch Health Companies | Enbridge Pref vs. Canadian General 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |