Correlation Between Condor Energies and Allied Properties
Can any of the company-specific risk be diversified away by investing in both Condor Energies and Allied Properties 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 Condor Energies and Allied Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Condor Energies and Allied Properties Real, you can compare the effects of market volatilities on Condor Energies and Allied Properties 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 Condor Energies with a short position of Allied Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Condor Energies and Allied Properties.
Diversification Opportunities for Condor Energies and Allied Properties
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Condor and Allied is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Condor Energies and Allied Properties Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Properties Real and Condor Energies 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 Condor Energies are associated (or correlated) with Allied Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Properties Real has no effect on the direction of Condor Energies i.e., Condor Energies and Allied Properties go up and down completely randomly.
Pair Corralation between Condor Energies and Allied Properties
Assuming the 90 days trading horizon Condor Energies is expected to generate 3.69 times more return on investment than Allied Properties. However, Condor Energies is 3.69 times more volatile than Allied Properties Real. It trades about 0.09 of its potential returns per unit of risk. Allied Properties Real is currently generating about -0.01 per unit of risk. If you would invest 30.00 in Condor Energies on November 1, 2024 and sell it today you would earn a total of 153.00 from holding Condor Energies or generate 510.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Condor Energies vs. Allied Properties Real
Performance |
| Timeline |
| Condor Energies |
| Allied Properties Real |
Condor Energies and Allied Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Condor Energies and Allied Properties
The main advantage of trading using opposite Condor Energies and Allied Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Condor Energies position performs unexpectedly, Allied Properties 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 Allied Properties will offset losses from the drop in Allied Properties' long position.| Condor Energies vs. Economic Investment Trust | Condor Energies vs. Solid Impact Investments | Condor Energies vs. Maple Peak Investments | Condor Energies vs. Laurentian Bank |
| Allied Properties vs. Canadian Apartment Properties | Allied Properties vs. Granite Real Estate | Allied Properties vs. Choice Properties Real | Allied Properties vs. HR Real Estate |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |