Correlation Between Big Ridge and Condor Gold

Can any of the company-specific risk be diversified away by investing in both Big Ridge and Condor Gold 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 Big Ridge and Condor Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Big Ridge Gold and Condor Gold Plc, you can compare the effects of market volatilities on Big Ridge and Condor Gold 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 Big Ridge with a short position of Condor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Ridge and Condor Gold.

Diversification Opportunities for Big Ridge and Condor Gold

-0.69

Correlation Coefficient

Big Ridge  Condor Gold

Excellent diversification

The 3 months correlation between Big and Condor is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Big Ridge Gold and Condor Gold Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Gold Plc and Big Ridge 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 Big Ridge Gold are associated (or correlated) with Condor Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Condor Gold Plc has no effect on the direction of Big Ridge i.e., Big Ridge and Condor Gold go up and down completely randomly.

Pair Corralation between Big Ridge and Condor Gold

Assuming the 90 days horizon Big Ridge Gold is expected to under-perform the Condor Gold. In addition to that, Big Ridge is 3.33 times more volatile than Condor Gold Plc. It trades about -0.03 of its total potential returns per unit of risk. Condor Gold Plc is currently generating about 0.27 per unit of volatility. If you would invest  35.00  in Condor Gold Plc on December 28, 2024 and sell it today you would earn a total of  3.00  from holding Condor Gold Plc or generate 8.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	23.33%
Values	Daily Returns

Big Ridge Gold  vs.  Condor Gold Plc

Big Ridge Gold

Risk-Adjusted Performance

Very Weak

Over the last 90 days Big Ridge Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Condor Gold Plc

Risk-Adjusted Performance

Solid

Over the last 90 days Condor Gold Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile technical and fundamental indicators, Condor Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Big Ridge and Condor Gold

The main advantage of trading using opposite Big Ridge and Condor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Ridge position performs unexpectedly, Condor Gold 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 Gold will offset losses from the drop in Condor Gold's long position.

The idea behind Big Ridge Gold and Condor Gold Plc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..