Correlation Between Tucows and Condor Energies

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

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

Diversification Opportunities for Tucows and Condor Energies

-0.6

Correlation Coefficient

Tucows  Condor Energies

Excellent diversification

The 3 months correlation between Tucows and Condor is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tucows Inc and Condor Energies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Energies and Tucows 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 Tucows Inc 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 Tucows i.e., Tucows and Condor Energies go up and down completely randomly.

Pair Corralation between Tucows and Condor Energies

Assuming the 90 days horizon Tucows Inc is expected to under-perform the Condor Energies. But the stock apears to be less risky and, when comparing its historical volatility, Tucows Inc is 1.5 times less risky than Condor Energies. The stock trades about -0.08 of its potential returns per unit of risk. The Condor Energies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  174.00  in Condor Energies on September 12, 2024 and sell it today you would earn a total of  14.00  from holding Condor Energies or generate 8.05% return on investment over 90 days.

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

Tucows Inc  vs.  Condor Energies

Tucows Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tucows Inc 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 January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Condor Energies

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Condor Energies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Condor Energies displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tucows and Condor Energies

The main advantage of trading using opposite Tucows and Condor Energies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tucows 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 Tucows Inc 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.