Correlation Between Hummingbird Resources and Tudor Gold
Can any of the company-specific risk be diversified away by investing in both Hummingbird Resources 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 Hummingbird Resources and Tudor Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hummingbird Resources PLC and Tudor Gold Corp, you can compare the effects of market volatilities on Hummingbird Resources 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 Hummingbird Resources with a short position of Tudor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hummingbird Resources and Tudor Gold.
Diversification Opportunities for Hummingbird Resources and Tudor Gold
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hummingbird and Tudor is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hummingbird Resources PLC 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 Hummingbird Resources 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 Hummingbird Resources PLC 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 Hummingbird Resources i.e., Hummingbird Resources and Tudor Gold go up and down completely randomly.
Pair Corralation between Hummingbird Resources and Tudor Gold
Assuming the 90 days horizon Hummingbird Resources PLC is expected to generate 4.04 times more return on investment than Tudor Gold. However, Hummingbird Resources is 4.04 times more volatile than Tudor Gold Corp. It trades about 0.12 of its potential returns per unit of risk. Tudor Gold Corp is currently generating about 0.04 per unit of risk. If you would invest 2.70 in Hummingbird Resources PLC on November 3, 2024 and sell it today you would earn a total of 0.50 from holding Hummingbird Resources PLC or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hummingbird Resources PLC vs. Tudor Gold Corp
Performance |
| Timeline |
| Hummingbird Resources PLC |
| Tudor Gold Corp |
Hummingbird Resources and Tudor Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hummingbird Resources and Tudor Gold
The main advantage of trading using opposite Hummingbird Resources and Tudor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hummingbird Resources 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.| Hummingbird Resources vs. Fremont Gold | Hummingbird Resources vs. Norsemont Mining | Hummingbird Resources vs. Tudor Gold Corp | Hummingbird Resources vs. Japan 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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