Correlation Between Enbridge Pref and Headwater Exploration
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enbridge Pref L and Headwater Exploration, you can compare the effects of market volatilities on Enbridge Pref and Headwater Exploration 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 Headwater Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Headwater Exploration.
Diversification Opportunities for Enbridge Pref and Headwater Exploration
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enbridge and Headwater is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref L and Headwater Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Headwater Exploration 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 L are associated (or correlated) with Headwater Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Headwater Exploration has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Headwater Exploration go up and down completely randomly.
Pair Corralation between Enbridge Pref and Headwater Exploration
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 55.66 times less return on investment than Headwater Exploration. But when comparing it to its historical volatility, Enbridge Pref L is 5.57 times less risky than Headwater Exploration. It trades about 0.03 of its potential returns per unit of risk. Headwater Exploration is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 716.00 in Headwater Exploration on August 14, 2025 and sell it today you would earn a total of 89.00 from holding Headwater Exploration or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref L vs. Headwater Exploration
Performance |
| Timeline |
| Enbridge Pref L |
| Headwater Exploration |
Enbridge Pref and Headwater Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Headwater Exploration
The main advantage of trading using opposite Enbridge Pref and Headwater Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Headwater Exploration 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 Headwater Exploration will offset losses from the drop in Headwater Exploration's long position.| Enbridge Pref vs. E Split Corp | Enbridge Pref vs. E Split Corp | Enbridge Pref vs. Sage Potash Corp | Enbridge Pref vs. Goldstorm Metals Corp |
| Headwater Exploration vs. Parex Resources | Headwater Exploration vs. Vermilion Energy | Headwater Exploration vs. Birchcliff Energy | Headwater Exploration vs. Advantage Oil Gas |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |