Correlation Between Ximen Mining and Enbridge Pref
Can any of the company-specific risk be diversified away by investing in both Ximen Mining and Enbridge Pref at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ximen Mining and Enbridge Pref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ximen Mining Corp and Enbridge Pref 3, you can compare the effects of market volatilities on Ximen Mining 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 Ximen Mining with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ximen Mining and Enbridge Pref.
Diversification Opportunities for Ximen Mining and Enbridge Pref
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ximen and Enbridge is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ximen Mining Corp and Enbridge Pref 3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 3 and Ximen Mining 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 Ximen Mining 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 3 has no effect on the direction of Ximen Mining i.e., Ximen Mining and Enbridge Pref go up and down completely randomly.
Pair Corralation between Ximen Mining and Enbridge Pref
Assuming the 90 days horizon Ximen Mining Corp is expected to under-perform the Enbridge Pref. In addition to that, Ximen Mining is 8.25 times more volatile than Enbridge Pref 3. It trades about -0.3 of its total potential returns per unit of risk. Enbridge Pref 3 is currently generating about 0.41 per unit of volatility. If you would invest 1,778 in Enbridge Pref 3 on September 25, 2024 and sell it today you would earn a total of 84.00 from holding Enbridge Pref 3 or generate 4.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ximen Mining Corp vs. Enbridge Pref 3
Performance |
Timeline |
Ximen Mining Corp |
Enbridge Pref 3 |
Ximen Mining and Enbridge Pref Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ximen Mining and Enbridge Pref
The main advantage of trading using opposite Ximen Mining and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ximen Mining 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.Ximen Mining vs. Wildsky Resources | Ximen Mining vs. Q Gold Resources | Ximen Mining vs. Plato Gold Corp | Ximen Mining vs. MAS Gold Corp |
Enbridge Pref vs. Enbridge | Enbridge Pref vs. Enbridge Srs P | Enbridge Pref vs. Enbridge Pref 7 | Enbridge Pref vs. TC Energy Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |