Correlation Between Western Investment and Condor Energies
Can any of the company-specific risk be diversified away by investing in both Western Investment 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 Western Investment and Condor Energies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Investment and Condor Energies, you can compare the effects of market volatilities on Western Investment 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 Western Investment with a short position of Condor Energies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Investment and Condor Energies.
Diversification Opportunities for Western Investment and Condor Energies
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Condor is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Western Investment and Condor Energies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Energies and Western Investment 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 Western Investment 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 Western Investment i.e., Western Investment and Condor Energies go up and down completely randomly.
Pair Corralation between Western Investment and Condor Energies
Given the investment horizon of 90 days Western Investment is expected to generate 1.09 times more return on investment than Condor Energies. However, Western Investment is 1.09 times more volatile than Condor Energies. It trades about 0.12 of its potential returns per unit of risk. Condor Energies is currently generating about 0.02 per unit of risk. If you would invest 42.00 in Western Investment on November 28, 2024 and sell it today you would earn a total of 25.00 from holding Western Investment or generate 59.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Investment vs. Condor Energies
Performance |
| Timeline |
| Western Investment |
| Condor Energies |
Western Investment and Condor Energies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Investment and Condor Energies
The main advantage of trading using opposite Western Investment and Condor Energies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Investment 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.| Western Investment vs. Firan Technology Group | Western Investment vs. Westshore Terminals Investment | Western Investment vs. Calian Technologies | Western Investment vs. Questor Technology |
| Condor Energies vs. TGS Esports | Condor Energies vs. Verizon Communications CDR | Condor Energies vs. Maple Leaf Foods | Condor Energies vs. High Liner Foods |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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