Correlation Between Argo Gold and Condor Gold
Can any of the company-specific risk be diversified away by investing in both Argo Gold and Condor Gold 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 Argo Gold and Condor Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Gold and Condor Gold Plc, you can compare the effects of market volatilities on Argo Gold and Condor Gold 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 Argo Gold with a short position of Condor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Gold and Condor Gold.
Diversification Opportunities for Argo Gold and Condor Gold
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Argo and Condor is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Argo Gold and Condor Gold Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Gold Plc and Argo Gold 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 Argo Gold are associated (or correlated) with Condor Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Condor Gold Plc has no effect on the direction of Argo Gold i.e., Argo Gold and Condor Gold go up and down completely randomly.
Pair Corralation between Argo Gold and Condor Gold
Assuming the 90 days horizon Argo Gold is expected to generate 3.22 times less return on investment than Condor Gold. In addition to that, Argo Gold is 1.4 times more volatile than Condor Gold Plc. It trades about 0.05 of its total potential returns per unit of risk. Condor Gold Plc is currently generating about 0.21 per unit of volatility. If you would invest 25.00 in Condor Gold Plc on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Condor Gold Plc or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Gold vs. Condor Gold Plc
Performance |
| Timeline |
| Argo Gold |
| Condor Gold Plc |
Argo Gold and Condor Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Gold and Condor Gold
The main advantage of trading using opposite Argo Gold and Condor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Gold position performs unexpectedly, Condor Gold 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 Gold will offset losses from the drop in Condor Gold's long position.| Argo Gold vs. Vertiv Holdings Co | Argo Gold vs. Nasdaq Inc | Argo Gold vs. McDonalds | Argo Gold vs. Walmart |
| Condor Gold vs. Vertiv Holdings Co | Condor Gold vs. Nasdaq Inc | Condor Gold vs. McDonalds | Condor Gold vs. Walmart |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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