Correlation Between Exco Technologies and Enbridge Pref
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By analyzing existing cross correlation between Exco Technologies Limited and Enbridge Pref L, you can compare the effects of market volatilities on Exco Technologies 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 Exco Technologies with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exco Technologies and Enbridge Pref.
Diversification Opportunities for Exco Technologies and Enbridge Pref
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exco and Enbridge is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Exco Technologies Limited and Enbridge Pref L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref L and Exco Technologies 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 Exco Technologies Limited 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 L has no effect on the direction of Exco Technologies i.e., Exco Technologies and Enbridge Pref go up and down completely randomly.
Pair Corralation between Exco Technologies and Enbridge Pref
Assuming the 90 days trading horizon Exco Technologies is expected to generate 2.32 times less return on investment than Enbridge Pref. In addition to that, Exco Technologies is 2.03 times more volatile than Enbridge Pref L. It trades about 0.02 of its total potential returns per unit of risk. Enbridge Pref L is currently generating about 0.1 per unit of volatility. If you would invest 2,052 in Enbridge Pref L on September 24, 2024 and sell it today you would earn a total of 173.00 from holding Enbridge Pref L or generate 8.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.2% |
Values | Daily Returns |
Exco Technologies Limited vs. Enbridge Pref L
Performance |
Timeline |
Exco Technologies |
Enbridge Pref L |
Exco Technologies and Enbridge Pref Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Exco Technologies and Enbridge Pref
The main advantage of trading using opposite Exco Technologies and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exco Technologies 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.Exco Technologies vs. Transcontinental | Exco Technologies vs. Methanex | Exco Technologies vs. Stella Jones | Exco Technologies vs. High Liner Foods |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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