Correlation Between Merger Mines and Condor Resources

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

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

Diversification Opportunities for Merger Mines and Condor Resources

0.0

Correlation Coefficient

Merger Mines  Condor Resources

Pay attention - limited upside

The 3 months correlation between Merger and Condor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merger Mines and Condor Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Resources and Merger Mines 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 Merger Mines are associated (or correlated) with Condor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Condor Resources has no effect on the direction of Merger Mines i.e., Merger Mines and Condor Resources go up and down completely randomly.

Pair Corralation between Merger Mines and Condor Resources

If you would invest  10.00  in Condor Resources on September 3, 2025 and sell it today you would earn a total of  5.00  from holding Condor Resources or generate 50.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Merger Mines  vs.  Condor Resources

Merger Mines

Risk-Adjusted Performance

Weakest

Over the last 90 days Merger Mines has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Merger Mines is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Condor Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Condor Resources are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Condor Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Merger Mines and Condor Resources

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

The idea behind Merger Mines and Condor Resources 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.

Check out your portfolio center.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..