Correlation Between Enbridge and Holly Energy
Can any of the company-specific risk be diversified away by investing in both Enbridge and Holly Energy 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 Enbridge and Holly Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enbridge and Holly Energy Partners, you can compare the effects of market volatilities on Enbridge and Holly 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 with a short position of Holly Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge and Holly Energy.
Diversification Opportunities for Enbridge and Holly Energy
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enbridge and Holly is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge and Holly Energy Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holly Energy Partners and Enbridge 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 are associated (or correlated) with Holly Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holly Energy Partners has no effect on the direction of Enbridge i.e., Enbridge and Holly Energy go up and down completely randomly.
Pair Corralation between Enbridge and Holly Energy
If you would invest 3,519 in Enbridge on February 26, 2024 and sell it today you would earn a total of 105.00 from holding Enbridge or generate 2.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
Enbridge vs. Holly Energy Partners
Performance |
Timeline |
Enbridge |
Holly Energy Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Enbridge and Holly Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Enbridge and Holly Energy
The main advantage of trading using opposite Enbridge and Holly Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge position performs unexpectedly, Holly 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 Holly Energy will offset losses from the drop in Holly Energy's long position.Enbridge vs. Energy Transfer LP | Enbridge vs. Kinder Morgan | Enbridge vs. MPLX LP | Enbridge vs. Pembina Pipeline Corp |
Holly Energy vs. MPLX LP | Holly Energy vs. Western Midstream Partners | Holly Energy vs. Plains All American | Holly Energy vs. Genesis Energy LP |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |