Correlation Between National Bank and Condor Energies
Can any of the company-specific risk be diversified away by investing in both National Bank 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 National Bank and Condor Energies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank of and Condor Energies, you can compare the effects of market volatilities on National Bank 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 National Bank with a short position of Condor Energies. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Condor Energies.
Diversification Opportunities for National Bank and Condor Energies
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between National and Condor is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Condor Energies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Energies and National Bank 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 National Bank of 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 National Bank i.e., National Bank and Condor Energies go up and down completely randomly.
Pair Corralation between National Bank and Condor Energies
Assuming the 90 days trading horizon National Bank is expected to generate 6.15 times less return on investment than Condor Energies. But when comparing it to its historical volatility, National Bank of is 6.19 times less risky than Condor Energies. It trades about 0.09 of its potential returns per unit of risk. Condor Energies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Condor Energies on August 30, 2024 and sell it today you would earn a total of 192.00 from holding Condor Energies or generate 533.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank of vs. Condor Energies
Performance |
| Timeline |
| National Bank |
| Condor Energies |
National Bank and Condor Energies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Condor Energies
The main advantage of trading using opposite National Bank and Condor Energies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank 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.| National Bank vs. Caribbean Utilities | National Bank vs. Medical Facilities | National Bank vs. Tree Island Steel | National Bank vs. Broadcom |
| Condor Energies vs. AKITA Drilling | Condor Energies vs. CVW CleanTech | Condor Energies vs. Verizon Communications CDR | Condor Energies vs. Xtract One Technologies |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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