Correlation Between Condor Energies and National Bank
Can any of the company-specific risk be diversified away by investing in both Condor Energies and National Bank 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 National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Condor Energies and National Bank of, you can compare the effects of market volatilities on Condor Energies and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Condor Energies and National Bank.
Diversification Opportunities for Condor Energies and National Bank
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Condor and National is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Condor Energies and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Condor Energies i.e., Condor Energies and National Bank go up and down completely randomly.
Pair Corralation between Condor Energies and National Bank
Assuming the 90 days trading horizon Condor Energies is expected to generate 6.24 times more return on investment than National Bank. However, Condor Energies is 6.24 times more volatile than National Bank of. It trades about 0.09 of its potential returns per unit of risk. National Bank of is currently generating about 0.08 per unit of risk. If you would invest 38.00 in Condor Energies on August 31, 2024 and sell it today you would earn a total of 184.00 from holding Condor Energies or generate 484.21% 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. National Bank of
Performance |
| Timeline |
| Condor Energies |
| National Bank |
Condor Energies and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Condor Energies and National Bank
The main advantage of trading using opposite Condor Energies and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Condor Energies position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| Condor Energies vs. Bragg Gaming Group | Condor Energies vs. Contagious Gaming | Condor Energies vs. CNJ Capital Investments | Condor Energies vs. Upstart Investments |
| National Bank vs. Fairfax Financial Holdings | National Bank vs. Fairfax Financial Holdings | National Bank vs. iShares Canadian HYBrid | National Bank vs. Brompton European Dividend |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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