Correlation Between Condor Energies and Intact Financial
Can any of the company-specific risk be diversified away by investing in both Condor Energies and Intact Financial 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 Intact Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Condor Energies and Intact Financial Corp, you can compare the effects of market volatilities on Condor Energies and Intact Financial 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 Intact Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Condor Energies and Intact Financial.
Diversification Opportunities for Condor Energies and Intact Financial
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Condor and Intact is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Condor Energies and Intact Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intact Financial Corp 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 Intact Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intact Financial Corp has no effect on the direction of Condor Energies i.e., Condor Energies and Intact Financial go up and down completely randomly.
Pair Corralation between Condor Energies and Intact Financial
Assuming the 90 days trading horizon Condor Energies is expected to generate 7.24 times more return on investment than Intact Financial. However, Condor Energies is 7.24 times more volatile than Intact Financial Corp. It trades about 0.08 of its potential returns per unit of risk. Intact Financial Corp is currently generating about 0.07 per unit of risk. If you would invest 38.00 in Condor Energies on August 26, 2024 and sell it today you would earn a total of 187.00 from holding Condor Energies or generate 492.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Condor Energies vs. Intact Financial Corp
Performance |
| Timeline |
| Condor Energies |
| Intact Financial Corp |
Condor Energies and Intact Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Condor Energies and Intact Financial
The main advantage of trading using opposite Condor Energies and Intact Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Condor Energies position performs unexpectedly, Intact Financial 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 Intact Financial will offset losses from the drop in Intact Financial's long position.| Condor Energies vs. Intact Financial Corp | Condor Energies vs. Everyday People Financial | Condor Energies vs. National Bank of | Condor Energies vs. Definity Financial Corp |
| Intact Financial vs. Forstrong Global Income | Intact Financial vs. BMO Aggregate Bond | Intact Financial vs. Terreno Resources Corp | Intact Financial vs. iShares Canadian HYBrid |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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