Correlation Between AltaGas and Enbridge Pref
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By analyzing existing cross correlation between AltaGas and Enbridge Pref 11, you can compare the effects of market volatilities on AltaGas 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 AltaGas with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of AltaGas and Enbridge Pref.
Diversification Opportunities for AltaGas and Enbridge Pref
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AltaGas and Enbridge is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding AltaGas and Enbridge Pref 11 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 11 and AltaGas 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 AltaGas 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 11 has no effect on the direction of AltaGas i.e., AltaGas and Enbridge Pref go up and down completely randomly.
Pair Corralation between AltaGas and Enbridge Pref
Assuming the 90 days trading horizon AltaGas is expected to generate 2.8 times more return on investment than Enbridge Pref. However, AltaGas is 2.8 times more volatile than Enbridge Pref 11. It trades about 0.1 of its potential returns per unit of risk. Enbridge Pref 11 is currently generating about 0.22 per unit of risk. If you would invest 4,006 in AltaGas on July 20, 2025 and sell it today you would earn a total of 241.00 from holding AltaGas or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AltaGas vs. Enbridge Pref 11
Performance |
| Timeline |
| AltaGas |
| Enbridge Pref 11 |
AltaGas and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AltaGas and Enbridge Pref
The main advantage of trading using opposite AltaGas and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AltaGas 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.| AltaGas vs. Emera Inc | AltaGas vs. Brookfield Infrastructure Partners | AltaGas vs. Capital Power | AltaGas vs. Brookfield Infrastructure Corp |
| Enbridge Pref vs. Dream Office Real | Enbridge Pref vs. Doman Building Materials | Enbridge Pref vs. Brookfield Office Properties | Enbridge Pref vs. Renoworks Software |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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