Correlation Between IGM Financial and Enbridge Pref
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By analyzing existing cross correlation between IGM Financial and Enbridge Pref 5, you can compare the effects of market volatilities on IGM Financial 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 IGM Financial with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGM Financial and Enbridge Pref.
Diversification Opportunities for IGM Financial and Enbridge Pref
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IGM and Enbridge is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding IGM Financial and Enbridge Pref 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 5 and IGM Financial 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 IGM Financial 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 5 has no effect on the direction of IGM Financial i.e., IGM Financial and Enbridge Pref go up and down completely randomly.
Pair Corralation between IGM Financial and Enbridge Pref
Assuming the 90 days trading horizon IGM Financial is expected to generate 2.5 times more return on investment than Enbridge Pref. However, IGM Financial is 2.5 times more volatile than Enbridge Pref 5. It trades about 0.13 of its potential returns per unit of risk. Enbridge Pref 5 is currently generating about 0.25 per unit of risk. If you would invest 5,471 in IGM Financial on September 4, 2025 and sell it today you would earn a total of 217.00 from holding IGM Financial or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
IGM Financial vs. Enbridge Pref 5
Performance |
| Timeline |
| IGM Financial |
| Enbridge Pref 5 |
IGM Financial and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGM Financial and Enbridge Pref
The main advantage of trading using opposite IGM Financial and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGM Financial 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.| IGM Financial vs. Domestic Metals Corp | IGM Financial vs. Mako Mining Corp | IGM Financial vs. Jack Nathan Medical | IGM Financial vs. Data Communications Management |
| Enbridge Pref vs. VIP Entertainment Technologies | Enbridge Pref vs. MTY Food Group | Enbridge Pref vs. Cogeco Communications | Enbridge Pref vs. Bird Construction |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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