Correlation Between Sixty North and Tudor Gold
Can any of the company-specific risk be diversified away by investing in both Sixty North 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 Sixty North and Tudor Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixty North Gold and Tudor Gold Corp, you can compare the effects of market volatilities on Sixty North 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 Sixty North with a short position of Tudor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixty North and Tudor Gold.
Diversification Opportunities for Sixty North and Tudor Gold
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sixty and Tudor is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sixty North 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 Sixty North 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 Sixty North 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 Sixty North i.e., Sixty North and Tudor Gold go up and down completely randomly.
Pair Corralation between Sixty North and Tudor Gold
Assuming the 90 days horizon Sixty North Gold is expected to generate 4.18 times more return on investment than Tudor Gold. However, Sixty North is 4.18 times more volatile than Tudor Gold Corp. It trades about 0.07 of its potential returns per unit of risk. Tudor Gold Corp is currently generating about -0.03 per unit of risk. If you would invest 6.90 in Sixty North Gold on November 3, 2024 and sell it today you would earn a total of 0.30 from holding Sixty North Gold or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Sixty North Gold vs. Tudor Gold Corp
Performance |
| Timeline |
| Sixty North Gold |
| Tudor Gold Corp |
Sixty North and Tudor Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixty North and Tudor Gold
The main advantage of trading using opposite Sixty North and Tudor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixty North 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.| Sixty North vs. Puma Exploration | Sixty North vs. Red Pine Exploration | Sixty North vs. Grande Portage Resources | Sixty North vs. Altamira 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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