Correlation Between Antioquia Gold and Tudor Gold
Can any of the company-specific risk be diversified away by investing in both Antioquia Gold and Tudor 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 Antioquia Gold and Tudor Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antioquia Gold and Tudor Gold Corp, you can compare the effects of market volatilities on Antioquia Gold and Tudor 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 Antioquia Gold with a short position of Tudor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antioquia Gold and Tudor Gold.
Diversification Opportunities for Antioquia Gold and Tudor Gold
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Antioquia and Tudor is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Antioquia Gold and Tudor Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tudor Gold Corp and Antioquia 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 Antioquia Gold are associated (or correlated) with Tudor Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tudor Gold Corp has no effect on the direction of Antioquia Gold i.e., Antioquia Gold and Tudor Gold go up and down completely randomly.
Pair Corralation between Antioquia Gold and Tudor Gold
Assuming the 90 days horizon Antioquia Gold is expected to generate 5.18 times more return on investment than Tudor Gold. However, Antioquia Gold is 5.18 times more volatile than Tudor Gold Corp. It trades about 0.21 of its potential returns per unit of risk. Tudor Gold Corp is currently generating about -0.25 per unit of risk. If you would invest 1.00 in Antioquia Gold on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Antioquia Gold or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antioquia Gold vs. Tudor Gold Corp
Performance |
| Timeline |
| Antioquia Gold |
| Tudor Gold Corp |
Antioquia Gold and Tudor Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antioquia Gold and Tudor Gold
The main advantage of trading using opposite Antioquia Gold and Tudor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antioquia Gold position performs unexpectedly, Tudor 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 Tudor Gold will offset losses from the drop in Tudor Gold's long position.| Antioquia Gold vs. Argo Gold | Antioquia Gold vs. Blue Star Gold | Antioquia Gold vs. Angkor Resources Corp | Antioquia Gold vs. Advance Gold Corp |
| Tudor Gold vs. Fremont Gold | Tudor Gold vs. Norsemont Mining | Tudor Gold vs. Hummingbird Resources PLC | Tudor Gold vs. Rio2 Limited |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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