Correlation Between Condor Gold and CI Canadian

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

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

Diversification Opportunities for Condor Gold and CI Canadian

0.33

Correlation Coefficient

Condor Gold  CI Canadian

Weak diversification

The 3 months correlation between Condor and CIC is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Condor Gold Plc and CI Canadian Banks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Canadian Banks and Condor Gold 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 Gold Plc are associated (or correlated) with CI Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Canadian Banks has no effect on the direction of Condor Gold i.e., Condor Gold and CI Canadian go up and down completely randomly.

Pair Corralation between Condor Gold and CI Canadian

Assuming the 90 days trading horizon Condor Gold Plc is expected to generate 13.46 times more return on investment than CI Canadian. However, Condor Gold is 13.46 times more volatile than CI Canadian Banks. It trades about 0.1 of its potential returns per unit of risk. CI Canadian Banks is currently generating about 0.32 per unit of risk. If you would invest  40.00  in Condor Gold Plc on September 12, 2024 and sell it today you would earn a total of  12.00  from holding Condor Gold Plc or generate 30.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Condor Gold Plc  vs.  CI Canadian Banks

Condor Gold Plc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Condor Gold Plc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Condor Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

CI Canadian Banks

Risk-Adjusted Performance

25 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CI Canadian Banks are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, CI Canadian may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Condor Gold and CI Canadian

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

The idea behind Condor Gold Plc and CI Canadian Banks 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 Transaction History module to view history of all your transactions and understand their impact on performance.