Correlation Between Condor Energies and Enablence Technologies

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Can any of the company-specific risk be diversified away by investing in both Condor Energies and Enablence Technologies 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 Condor Energies and Enablence Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Condor Energies and Enablence Technologies, you can compare the effects of market volatilities on Condor Energies and Enablence Technologies 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 Condor Energies with a short position of Enablence Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Condor Energies and Enablence Technologies.

Diversification Opportunities for Condor Energies and Enablence Technologies

CondorEnablenceDiversified AwayCondorEnablenceDiversified Away100%
-0.26
  Correlation Coefficient

Very good diversification

The 3 months correlation between Condor and Enablence is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Condor Energies and Enablence Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enablence Technologies and Condor Energies 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 Condor Energies are associated (or correlated) with Enablence Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enablence Technologies has no effect on the direction of Condor Energies i.e., Condor Energies and Enablence Technologies go up and down completely randomly.

Pair Corralation between Condor Energies and Enablence Technologies

Assuming the 90 days trading horizon Condor Energies is expected to under-perform the Enablence Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Condor Energies is 3.0 times less risky than Enablence Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The Enablence Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  140.00  in Enablence Technologies on November 16, 2024 and sell it today you would earn a total of  51.00  from holding Enablence Technologies or generate 36.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Condor Energies  vs.  Enablence Technologies

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -40-20020406080
JavaScript chart by amCharts 3.21.15CDR ENA
       Timeline  
Condor Energies 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Condor Energies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Condor Energies is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.71.81.922.12.22.32.42.5
Enablence Technologies 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Enablence Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Enablence Technologies showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.21.41.61.822.22.42.6

Condor Energies and Enablence Technologies Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.12-3.83-2.55-1.260.01.132.293.444.59 0.010.020.030.04
JavaScript chart by amCharts 3.21.15CDR ENA
       Returns  

Pair Trading with Condor Energies and Enablence Technologies

The main advantage of trading using opposite Condor Energies and Enablence Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Condor Energies position performs unexpectedly, Enablence Technologies 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 Enablence Technologies will offset losses from the drop in Enablence Technologies' long position.
The idea behind Condor Energies and Enablence Technologies 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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