Correlation Between Economic Investment and Enbridge Pref
Specify exactly 2 symbols:
By analyzing existing cross correlation between Economic Investment Trust and Enbridge Pref 5, you can compare the effects of market volatilities on Economic Investment 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 Economic Investment with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Economic Investment and Enbridge Pref.
Diversification Opportunities for Economic Investment and Enbridge Pref
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Economic and Enbridge is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Economic Investment Trust 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 Economic Investment 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 Economic Investment Trust 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 Economic Investment i.e., Economic Investment and Enbridge Pref go up and down completely randomly.
Pair Corralation between Economic Investment and Enbridge Pref
Assuming the 90 days trading horizon Economic Investment is expected to generate 1.27 times less return on investment than Enbridge Pref. In addition to that, Economic Investment is 1.77 times more volatile than Enbridge Pref 5. It trades about 0.1 of its total potential returns per unit of risk. Enbridge Pref 5 is currently generating about 0.22 per unit of volatility. If you would invest 2,255 in Enbridge Pref 5 on September 10, 2024 and sell it today you would earn a total of 142.00 from holding Enbridge Pref 5 or generate 6.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
Economic Investment Trust vs. Enbridge Pref 5
Performance |
Timeline |
Economic Investment Trust |
Enbridge Pref 5 |
Economic Investment and Enbridge Pref Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Economic Investment and Enbridge Pref
The main advantage of trading using opposite Economic Investment and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Economic Investment 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.Economic Investment vs. LithiumBank Resources Corp | Economic Investment vs. Forstrong Global Income | Economic Investment vs. BMO Aggregate Bond | Economic Investment vs. Terreno Resources Corp |
Enbridge Pref vs. Brookfield Investments | Enbridge Pref vs. 2028 Investment Grade | Enbridge Pref vs. Bird Construction | Enbridge Pref vs. Orbit Garant Drilling |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |