Correlation Between Talon Metals and Condor Energies
Can any of the company-specific risk be diversified away by investing in both Talon Metals 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 Talon Metals and Condor Energies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talon Metals Corp and Condor Energies, you can compare the effects of market volatilities on Talon Metals 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 Talon Metals with a short position of Condor Energies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talon Metals and Condor Energies.
Diversification Opportunities for Talon Metals and Condor Energies
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Talon and Condor is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Talon Metals Corp and Condor Energies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Energies and Talon Metals 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 Talon Metals 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 Talon Metals i.e., Talon Metals and Condor Energies go up and down completely randomly.
Pair Corralation between Talon Metals and Condor Energies
Assuming the 90 days trading horizon Talon Metals Corp is expected to generate 0.68 times more return on investment than Condor Energies. However, Talon Metals Corp is 1.47 times less risky than Condor Energies. It trades about 0.21 of its potential returns per unit of risk. Condor Energies is currently generating about -0.28 per unit of risk. If you would invest 8.00 in Talon Metals Corp on September 13, 2024 and sell it today you would earn a total of 1.00 from holding Talon Metals Corp or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Talon Metals Corp vs. Condor Energies
Performance |
| Timeline |
| Talon Metals Corp |
| Condor Energies |
Talon Metals and Condor Energies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talon Metals and Condor Energies
The main advantage of trading using opposite Talon Metals and Condor Energies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talon Metals 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.| Talon Metals vs. Foraco International SA | Talon Metals vs. Geodrill Limited | Talon Metals vs. Major Drilling Group | Talon Metals vs. Bri Chem Corp |
| Condor Energies vs. National Bank of | Condor Energies vs. Income Financial Trust | Condor Energies vs. Talon Metals Corp | Condor Energies vs. 2028 Investment Grade |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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