Correlation Between Gncc Capital and Condor Gold

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

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

Diversification Opportunities for Gncc Capital and Condor Gold

-0.12

Correlation Coefficient

Gncc Capital  Condor Gold

Good diversification

The 3 months correlation between Gncc and Condor is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Gncc Capital 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 Gncc Capital 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 Gncc Capital 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 Gncc Capital i.e., Gncc Capital and Condor Gold go up and down completely randomly.

Pair Corralation between Gncc Capital and Condor Gold

Given the investment horizon of 90 days Gncc Capital is expected to generate 18.34 times more return on investment than Condor Gold. However, Gncc Capital is 18.34 times more volatile than Condor Gold Plc. It trades about 0.17 of its potential returns per unit of risk. Condor Gold Plc is currently generating about 0.03 per unit of risk. If you would invest  0.00  in Gncc Capital on December 2, 2024 and sell it today you would earn a total of  0.01  from holding Gncc Capital or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	54.1%
Values	Daily Returns

Gncc Capital  vs.  Condor Gold Plc

Gncc Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gncc Capital are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain fundamental indicators, Gncc Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Condor Gold Plc

Risk-Adjusted Performance

Weak

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 Gncc Capital and Condor Gold

The main advantage of trading using opposite Gncc Capital and Condor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gncc Capital 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 Gncc Capital 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.