Correlation Between Tudor Gold and Dacian Gold
Can any of the company-specific risk be diversified away by investing in both Tudor Gold and Dacian 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 Tudor Gold and Dacian Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tudor Gold Corp and Dacian Gold Limited, you can compare the effects of market volatilities on Tudor Gold and Dacian 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 Tudor Gold with a short position of Dacian Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tudor Gold and Dacian Gold.
Diversification Opportunities for Tudor Gold and Dacian Gold
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tudor and Dacian is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Tudor Gold Corp and Dacian Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dacian Gold Limited and Tudor 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 Tudor Gold Corp are associated (or correlated) with Dacian Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dacian Gold Limited has no effect on the direction of Tudor Gold i.e., Tudor Gold and Dacian Gold go up and down completely randomly.
Pair Corralation between Tudor Gold and Dacian Gold
If you would invest 84.00 in Tudor Gold Corp on August 26, 2024 and sell it today you would lose (25.00) from holding Tudor Gold Corp or give up 29.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.3% |
| Values | Daily Returns |
Tudor Gold Corp vs. Dacian Gold Limited
Performance |
| Timeline |
| Tudor Gold Corp |
| Dacian Gold Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tudor Gold and Dacian Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tudor Gold and Dacian Gold
The main advantage of trading using opposite Tudor Gold and Dacian Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tudor Gold position performs unexpectedly, Dacian 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 Dacian Gold will offset losses from the drop in Dacian Gold's long position.| Tudor Gold vs. Ascendant Resources | Tudor Gold vs. Cantex Mine Development | Tudor Gold vs. Amarc Resources | Tudor Gold vs. Sterling Metals Corp |
| Dacian Gold vs. Minnova Corp | Dacian Gold vs. Argo Gold | Dacian Gold vs. Advance Gold Corp | Dacian Gold vs. Blue Star Gold |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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