Correlation Between Xtract One and Condor Energies
Can any of the company-specific risk be diversified away by investing in both Xtract One 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 Xtract One and Condor Energies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtract One Technologies and Condor Energies, you can compare the effects of market volatilities on Xtract One 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 Xtract One with a short position of Condor Energies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtract One and Condor Energies.
Diversification Opportunities for Xtract One and Condor Energies
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtract and Condor is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Xtract One Technologies and Condor Energies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Energies and Xtract One 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 Xtract One Technologies 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 Xtract One i.e., Xtract One and Condor Energies go up and down completely randomly.
Pair Corralation between Xtract One and Condor Energies
Assuming the 90 days trading horizon Xtract One is expected to generate 13.26 times less return on investment than Condor Energies. But when comparing it to its historical volatility, Xtract One Technologies is 1.73 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 0.2 of returns per unit of risk over similar time horizon. If you would invest 170.00 in Condor Energies on August 29, 2024 and sell it today you would earn a total of 69.00 from holding Condor Energies or generate 40.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtract One Technologies vs. Condor Energies
Performance |
| Timeline |
| Xtract One Technologies |
| Condor Energies |
Xtract One and Condor Energies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtract One and Condor Energies
The main advantage of trading using opposite Xtract One and Condor Energies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtract One 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.| Xtract One vs. Berkshire Hathaway CDR | Xtract One vs. JPMorgan Chase Co | Xtract One vs. Bank of America | Xtract One vs. Alphabet Inc CDR |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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