Correlation Between Enbridge H and Adobe

Can any of the company-specific risk be diversified away by investing in both Enbridge H and Adobe 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 H and Adobe into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Enbridge H Cum and Adobe Inc, you can compare the effects of market volatilities on Enbridge H and Adobe 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 H with a short position of Adobe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge H and Adobe.

Diversification Opportunities for Enbridge H and Adobe

0.0

Correlation Coefficient

Enbridge H  Adobe

Pay attention - limited upside

The 3 months correlation between Enbridge and Adobe is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge H Cum and Adobe Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adobe Inc and Enbridge H 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 H Cum are associated (or correlated) with Adobe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adobe Inc has no effect on the direction of Enbridge H i.e., Enbridge H and Adobe go up and down completely randomly.

Pair Corralation between Enbridge H and Adobe

If you would invest (100.00) in Enbridge H Cum on July 23, 2025 and sell it today you would earn a total of  100.00  from holding Enbridge H Cum or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Enbridge H Cum  vs.  Adobe Inc

Enbridge H Cum

Risk-Adjusted Performance

Fair

Over the last 90 days Enbridge H Cum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Enbridge H is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Adobe Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Adobe Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Enbridge H and Adobe

The main advantage of trading using opposite Enbridge H and Adobe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge H position performs unexpectedly, Adobe 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 Adobe will offset losses from the drop in Adobe's long position.

The idea behind Enbridge H Cum and Adobe Inc 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.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.