Correlation Between Wishpond Technologies and Condor Energies

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

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

Diversification Opportunities for Wishpond Technologies and Condor Energies

-0.71

Correlation Coefficient

Wishpond Technologies  Condor Energies

Pay attention - limited upside

The 3 months correlation between Wishpond and Condor is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Wishpond Technologies and Condor Energies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Energies and Wishpond Technologies 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 Wishpond Technologies 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 Wishpond Technologies i.e., Wishpond Technologies and Condor Energies go up and down completely randomly.

Pair Corralation between Wishpond Technologies and Condor Energies

Assuming the 90 days trading horizon Wishpond Technologies is expected to under-perform the Condor Energies. In addition to that, Wishpond Technologies is 1.1 times more volatile than Condor Energies. It trades about -0.08 of its total potential returns per unit of risk. Condor Energies is currently generating about 0.1 per unit of volatility. If you would invest  176.00  in Condor Energies on September 4, 2024 and sell it today you would earn a total of  42.00  from holding Condor Energies or generate 23.86% return on investment over 90 days.

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

Wishpond Technologies  vs.  Condor Energies

Wishpond Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wishpond Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Condor Energies

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Condor Energies are ranked lower than 7 (%) 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 Wishpond Technologies and Condor Energies

The main advantage of trading using opposite Wishpond Technologies and Condor Energies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wishpond Technologies 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 Wishpond Technologies 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..