Correlation Between Lycos Energy and Condor Energies
Can any of the company-specific risk be diversified away by investing in both Lycos Energy and Condor Energies 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 Lycos Energy and Condor Energies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lycos Energy and Condor Energies, you can compare the effects of market volatilities on Lycos Energy and Condor Energies 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 Lycos Energy with a short position of Condor Energies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lycos Energy and Condor Energies.
Diversification Opportunities for Lycos Energy and Condor Energies
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lycos and Condor is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lycos Energy and Condor Energies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Energies and Lycos Energy 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 Lycos Energy are associated (or correlated) with Condor Energies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Condor Energies has no effect on the direction of Lycos Energy i.e., Lycos Energy and Condor Energies go up and down completely randomly.
Pair Corralation between Lycos Energy and Condor Energies
Assuming the 90 days horizon Lycos Energy is expected to generate 0.99 times more return on investment than Condor Energies. However, Lycos Energy is 1.01 times less risky than Condor Energies. It trades about -0.03 of its potential returns per unit of risk. Condor Energies is currently generating about -0.09 per unit of risk. If you would invest 286.00 in Lycos Energy on September 1, 2024 and sell it today you would lose (9.00) from holding Lycos Energy or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lycos Energy vs. Condor Energies
Performance |
| Timeline |
| Lycos Energy |
| Condor Energies |
Lycos Energy and Condor Energies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lycos Energy and Condor Energies
The main advantage of trading using opposite Lycos Energy and Condor Energies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lycos Energy position performs unexpectedly, Condor Energies 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 Condor Energies will offset losses from the drop in Condor Energies' long position.| Lycos Energy vs. Definity Financial Corp | Lycos Energy vs. Plaza Retail REIT | Lycos Energy vs. NorthWest Healthcare Properties | Lycos Energy vs. Pollard Banknote Limited |
| Condor Energies vs. East Side Games | Condor Energies vs. Data Communications Management | Condor Energies vs. Element Fleet Management | Condor Energies vs. Algoma Steel Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |