Correlation Between Dynacor Gold and Condor Gold

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

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

Diversification Opportunities for Dynacor Gold and Condor Gold

-0.62

Correlation Coefficient

Dynacor Gold  Condor Gold

Excellent diversification

The 3 months correlation between Dynacor and Condor is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dynacor Gold Mines 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 Dynacor 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 Dynacor Gold Mines 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 Dynacor Gold i.e., Dynacor Gold and Condor Gold go up and down completely randomly.

Pair Corralation between Dynacor Gold and Condor Gold

Assuming the 90 days horizon Dynacor Gold Mines is expected to generate 0.27 times more return on investment than Condor Gold. However, Dynacor Gold Mines is 3.64 times less risky than Condor Gold. It trades about 0.09 of its potential returns per unit of risk. Condor Gold Plc is currently generating about -0.01 per unit of risk. If you would invest  385.00  in Dynacor Gold Mines on August 31, 2024 and sell it today you would earn a total of  44.00  from holding Dynacor Gold Mines or generate 11.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Dynacor Gold Mines  vs.  Condor Gold Plc

Dynacor Gold Mines

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dynacor Gold Mines are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Dynacor Gold may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Condor Gold Plc

Risk-Adjusted Performance

0 of 100

Very 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 stable technical and fundamental indicators, Condor Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Dynacor Gold and Condor Gold

The main advantage of trading using opposite Dynacor Gold and Condor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynacor Gold 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 Dynacor Gold Mines 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 Transaction History module to view history of all your transactions and understand their impact on performance.