Correlation Between Enbridge Pref and Suncor Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enbridge Pref 11 and Suncor Energy, you can compare the effects of market volatilities on Enbridge Pref and Suncor Energy 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 Enbridge Pref with a short position of Suncor Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Suncor Energy.
Diversification Opportunities for Enbridge Pref and Suncor Energy
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Enbridge and Suncor is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 11 and Suncor Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suncor Energy and Enbridge Pref 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 Enbridge Pref 11 are associated (or correlated) with Suncor Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suncor Energy has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Suncor Energy go up and down completely randomly.
Pair Corralation between Enbridge Pref and Suncor Energy
Assuming the 90 days trading horizon Enbridge Pref 11 is expected to generate 0.39 times more return on investment than Suncor Energy. However, Enbridge Pref 11 is 2.58 times less risky than Suncor Energy. It trades about 0.27 of its potential returns per unit of risk. Suncor Energy is currently generating about -0.01 per unit of risk. If you would invest 1,729 in Enbridge Pref 11 on February 7, 2024 and sell it today you would earn a total of 52.00 from holding Enbridge Pref 11 or generate 3.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Enbridge Pref 11 vs. Suncor Energy
Performance |
Timeline |
Enbridge Pref 11 |
Suncor Energy |
Enbridge Pref and Suncor Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Enbridge Pref and Suncor Energy
The main advantage of trading using opposite Enbridge Pref and Suncor Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Suncor Energy 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 Suncor Energy will offset losses from the drop in Suncor Energy's long position.The idea behind Enbridge Pref 11 and Suncor Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Suncor Energy vs. Enbridge | Suncor Energy vs. Canadian Natural Resources | Suncor Energy vs. Toronto Dominion Bank | Suncor Energy vs. Bank of Nova |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |