Correlation Between Condor Energies and Enbridge F

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

By analyzing existing cross correlation between Condor Energies and Enbridge F Cum, you can compare the effects of market volatilities on Condor Energies and Enbridge F 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 Enbridge F. Check out your portfolio center. Please also check ongoing floating volatility patterns of Condor Energies and Enbridge F.

Diversification Opportunities for Condor Energies and Enbridge F

-0.8

Correlation Coefficient

Condor Energies  Enbridge F

Pay attention - limited upside

The 3 months correlation between Condor and Enbridge is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Condor Energies and Enbridge F Cum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge F Cum 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 Enbridge F. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge F Cum has no effect on the direction of Condor Energies i.e., Condor Energies and Enbridge F go up and down completely randomly.

Pair Corralation between Condor Energies and Enbridge F

Assuming the 90 days trading horizon Condor Energies is expected to generate 8.92 times more return on investment than Enbridge F. However, Condor Energies is 8.92 times more volatile than Enbridge F Cum. It trades about 0.08 of its potential returns per unit of risk. Enbridge F Cum is currently generating about 0.07 per unit of risk. If you would invest  35.00  in Condor Energies on October 24, 2024 and sell it today you would earn a total of  148.00  from holding Condor Energies or generate 422.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	99.8%
Values	Daily Returns

Condor Energies  vs.  Enbridge F Cum

Condor Energies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Condor Energies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Enbridge F Cum

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Enbridge F Cum are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Enbridge F may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Condor Energies and Enbridge F

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

The idea behind Condor Energies and Enbridge F Cum 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.