Correlation Between Bip Investment and Condor Energies

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

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

Diversification Opportunities for Bip Investment and Condor Energies

-0.83

Correlation Coefficient

Bip Investment  Condor Energies

Pay attention - limited upside

The 3 months correlation between Bip and Condor is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bip Investment Corp and Condor Energies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Energies and Bip Investment 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 Bip Investment Corp are associated (or correlated) with Condor Energies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Condor Energies has no effect on the direction of Bip Investment i.e., Bip Investment and Condor Energies go up and down completely randomly.

Pair Corralation between Bip Investment and Condor Energies

Assuming the 90 days trading horizon Bip Investment Corp is expected to generate 0.07 times more return on investment than Condor Energies. However, Bip Investment Corp is 15.36 times less risky than Condor Energies. It trades about 0.31 of its potential returns per unit of risk. Condor Energies is currently generating about -0.06 per unit of risk. If you would invest  2,454  in Bip Investment Corp on March 19, 2024 and sell it today you would earn a total of  72.00  from holding Bip Investment Corp or generate 2.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Bip Investment Corp  vs.  Condor Energies

Bip Investment Corp

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bip Investment Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Bip Investment may actually be approaching a critical reversion point that can send shares even higher in July 2024.

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 unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in July 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Bip Investment and Condor Energies

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

The idea behind Bip Investment Corp and Condor Energies 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.