Correlation Between Excelsior Mining and Condor Energies
Can any of the company-specific risk be diversified away by investing in both Excelsior Mining 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 Excelsior Mining and Condor Energies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelsior Mining Corp and Condor Energies, you can compare the effects of market volatilities on Excelsior Mining 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 Excelsior Mining with a short position of Condor Energies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Mining and Condor Energies.
Diversification Opportunities for Excelsior Mining and Condor Energies
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Excelsior and Condor is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Mining Corp and Condor Energies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Energies and Excelsior Mining 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 Excelsior Mining Corp 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 Excelsior Mining i.e., Excelsior Mining and Condor Energies go up and down completely randomly.
Pair Corralation between Excelsior Mining and Condor Energies
Assuming the 90 days trading horizon Excelsior Mining Corp is expected to generate 1.16 times more return on investment than Condor Energies. However, Excelsior Mining is 1.16 times more volatile than Condor Energies. It trades about 0.05 of its potential returns per unit of risk. Condor Energies is currently generating about 0.04 per unit of risk. 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 |
Excelsior Mining Corp vs. Condor Energies
Performance |
| Timeline |
| Excelsior Mining Corp |
| Condor Energies |
Excelsior Mining and Condor Energies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Mining and Condor Energies
The main advantage of trading using opposite Excelsior Mining and Condor Energies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Mining 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.| Excelsior Mining vs. Ivanhoe Energy | Excelsior Mining vs. Orezone Gold Corp | Excelsior Mining vs. Faraday Copper Corp |
| Condor Energies vs. Globex Mining Enterprises | Condor Energies vs. Arizona Gold Silver | Condor Energies vs. Nicola Mining | Condor Energies vs. Canlan Ice Sports |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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