Correlation Between Condor Energies and Excellon Resources
Can any of the company-specific risk be diversified away by investing in both Condor Energies and Excellon 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 Condor Energies and Excellon Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Condor Energies and Excellon Resources, you can compare the effects of market volatilities on Condor Energies and Excellon 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 Condor Energies with a short position of Excellon Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Condor Energies and Excellon Resources.
Diversification Opportunities for Condor Energies and Excellon Resources
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Condor and Excellon is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Condor Energies and Excellon Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excellon Resources 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 Excellon Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excellon Resources has no effect on the direction of Condor Energies i.e., Condor Energies and Excellon Resources go up and down completely randomly.
Pair Corralation between Condor Energies and Excellon Resources
Assuming the 90 days trading horizon Condor Energies is expected to generate 0.85 times more return on investment than Excellon Resources. However, Condor Energies is 1.18 times less risky than Excellon Resources. It trades about 0.09 of its potential returns per unit of risk. Excellon Resources is currently generating about 0.0 per unit of risk. If you would invest 35.00 in Condor Energies on September 3, 2024 and sell it today you would earn a total of 199.00 from holding Condor Energies or generate 568.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Condor Energies vs. Excellon Resources
Performance |
| Timeline |
| Condor Energies |
| Excellon Resources |
Condor Energies and Excellon Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Condor Energies and Excellon Resources
The main advantage of trading using opposite Condor Energies and Excellon Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Condor Energies position performs unexpectedly, Excellon 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 Excellon Resources will offset losses from the drop in Excellon Resources' long position.| Condor Energies vs. Quipt Home Medical | Condor Energies vs. Wishpond Technologies | Condor Energies vs. North American Construction | Condor Energies vs. Advent Wireless |
| Excellon Resources vs. Algoma Steel Group | Excellon Resources vs. Champion Iron | Excellon Resources vs. International Zeolite Corp | Excellon Resources vs. European Residential Real |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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