Correlation Between Tudor Gold and Endurance Gold
Can any of the company-specific risk be diversified away by investing in both Tudor Gold and Endurance 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 Endurance 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 Endurance Gold, you can compare the effects of market volatilities on Tudor Gold and Endurance 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 Endurance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tudor Gold and Endurance Gold.
Diversification Opportunities for Tudor Gold and Endurance Gold
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tudor and Endurance is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Tudor Gold Corp and Endurance Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endurance Gold 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 Endurance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endurance Gold has no effect on the direction of Tudor Gold i.e., Tudor Gold and Endurance Gold go up and down completely randomly.
Pair Corralation between Tudor Gold and Endurance Gold
Assuming the 90 days horizon Tudor Gold Corp is expected to under-perform the Endurance Gold. In addition to that, Tudor Gold is 1.59 times more volatile than Endurance Gold. It trades about -0.03 of its total potential returns per unit of risk. Endurance Gold is currently generating about 0.01 per unit of volatility. If you would invest 10.00 in Endurance Gold on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Endurance Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.12% |
| Values | Daily Returns |
Tudor Gold Corp vs. Endurance Gold
Performance |
| Timeline |
| Tudor Gold Corp |
| Endurance Gold |
Tudor Gold and Endurance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tudor Gold and Endurance Gold
The main advantage of trading using opposite Tudor Gold and Endurance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tudor Gold position performs unexpectedly, Endurance 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 Endurance Gold will offset losses from the drop in Endurance Gold's long position.| Tudor Gold vs. Fremont Gold | Tudor Gold vs. Norsemont Mining | Tudor Gold vs. Hummingbird Resources PLC | Tudor Gold vs. Rio2 Limited |
| Endurance Gold vs. Red Pine Exploration | Endurance Gold vs. Altamira Gold Corp | Endurance Gold vs. Grande Portage Resources | Endurance Gold vs. Tectonic Metals |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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