Correlation Between Hitachi Metals and Tudor Gold
Can any of the company-specific risk be diversified away by investing in both Hitachi Metals 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 Hitachi Metals and Tudor Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hitachi Metals and Tudor Gold Corp, you can compare the effects of market volatilities on Hitachi Metals 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 Hitachi Metals with a short position of Tudor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitachi Metals and Tudor Gold.
Diversification Opportunities for Hitachi Metals and Tudor Gold
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hitachi and Tudor is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hitachi Metals 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 Hitachi Metals 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 Hitachi Metals 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 Hitachi Metals i.e., Hitachi Metals and Tudor Gold go up and down completely randomly.
Pair Corralation between Hitachi Metals and Tudor Gold
Assuming the 90 days horizon Hitachi Metals is expected to generate 43.72 times more return on investment than Tudor Gold. However, Hitachi Metals is 43.72 times more volatile than Tudor Gold Corp. It trades about 0.22 of its potential returns per unit of risk. Tudor Gold Corp is currently generating about 0.01 per unit of risk. If you would invest 1,446 in Hitachi Metals on August 29, 2024 and sell it today you would earn a total of 99,998,554 from holding Hitachi Metals or generate 6915529.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 7.86% |
| Values | Daily Returns |
Hitachi Metals vs. Tudor Gold Corp
Performance |
| Timeline |
| Hitachi Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tudor Gold Corp |
Hitachi Metals and Tudor Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitachi Metals and Tudor Gold
The main advantage of trading using opposite Hitachi Metals and Tudor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitachi Metals 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.| Hitachi Metals vs. Amgen Inc | Hitachi Metals vs. Alvotech | Hitachi Metals vs. NioCorp Developments Ltd | Hitachi Metals vs. Vita Coco |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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