Correlation Between Anglo American and Condor Resources
Can any of the company-specific risk be diversified away by investing in both Anglo American and Condor Resources 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 Anglo American and Condor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglo American Platinum and Condor Resources, you can compare the effects of market volatilities on Anglo American and Condor Resources 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 Anglo American with a short position of Condor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo American and Condor Resources.
Diversification Opportunities for Anglo American and Condor Resources
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anglo and Condor is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Anglo American Platinum and Condor Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Resources and Anglo American 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 Anglo American Platinum are associated (or correlated) with Condor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Condor Resources has no effect on the direction of Anglo American i.e., Anglo American and Condor Resources go up and down completely randomly.
Pair Corralation between Anglo American and Condor Resources
Assuming the 90 days horizon Anglo American Platinum is expected to under-perform the Condor Resources. But the pink sheet apears to be less risky and, when comparing its historical volatility, Anglo American Platinum is 1.4 times less risky than Condor Resources. The pink sheet trades about -0.23 of its potential returns per unit of risk. The Condor Resources is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Condor Resources on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Condor Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglo American Platinum vs. Condor Resources
Performance |
| Timeline |
| Anglo American Platinum |
| Condor Resources |
Anglo American and Condor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglo American and Condor Resources
The main advantage of trading using opposite Anglo American and Condor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo American position performs unexpectedly, Condor Resources 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 Condor Resources will offset losses from the drop in Condor Resources' long position.| Anglo American vs. Griffon | Anglo American vs. Videolocity International | Anglo American vs. SFL Corporation | Anglo American vs. CECO Environmental Corp |
| Condor Resources vs. Where Food Comes | Condor Resources vs. National CineMedia | Condor Resources vs. Fluent Inc | Condor Resources vs. Global E Online |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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