Correlation Between Condor Energies and Excelsior Mining
Can any of the company-specific risk be diversified away by investing in both Condor Energies and Excelsior Mining 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 Excelsior Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Condor Energies and Excelsior Mining Corp, you can compare the effects of market volatilities on Condor Energies and Excelsior Mining 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 Excelsior Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Condor Energies and Excelsior Mining.
Diversification Opportunities for Condor Energies and Excelsior Mining
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Condor and Excelsior is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Condor Energies and Excelsior Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelsior Mining 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 Excelsior Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelsior Mining Corp has no effect on the direction of Condor Energies i.e., Condor Energies and Excelsior Mining go up and down completely randomly.
Pair Corralation between Condor Energies and Excelsior Mining
Assuming the 90 days trading horizon Condor Energies is expected to generate 1.4 times less return on investment than Excelsior Mining. But when comparing it to its historical volatility, Condor Energies is 1.16 times less risky than Excelsior Mining. It trades about 0.04 of its potential returns per unit of risk. Excelsior Mining Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Excelsior Mining Corp on September 14, 2024 and sell it today you would earn a total of 7.00 from holding Excelsior Mining Corp or generate 50.0% 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. Excelsior Mining Corp
Performance |
| Timeline |
| Condor Energies |
| Excelsior Mining Corp |
Condor Energies and Excelsior Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Condor Energies and Excelsior Mining
The main advantage of trading using opposite Condor Energies and Excelsior Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Condor Energies position performs unexpectedly, Excelsior Mining 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 Excelsior Mining will offset losses from the drop in Excelsior Mining's long position.| Condor Energies vs. Globex Mining Enterprises | Condor Energies vs. Arizona Gold Silver | Condor Energies vs. Nicola Mining | Condor Energies vs. Canlan Ice Sports |
| Excelsior Mining vs. Ivanhoe Energy | Excelsior Mining vs. Orezone Gold Corp | Excelsior Mining vs. Faraday Copper Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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