Correlation Between Tudor Gold and Orefinders Resources
Can any of the company-specific risk be diversified away by investing in both Tudor Gold and Orefinders Resources 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 Orefinders Resources 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 Orefinders Resources, you can compare the effects of market volatilities on Tudor Gold and Orefinders Resources 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 Orefinders Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tudor Gold and Orefinders Resources.
Diversification Opportunities for Tudor Gold and Orefinders Resources
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tudor and Orefinders is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Tudor Gold Corp and Orefinders Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orefinders Resources 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 Orefinders Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orefinders Resources has no effect on the direction of Tudor Gold i.e., Tudor Gold and Orefinders Resources go up and down completely randomly.
Pair Corralation between Tudor Gold and Orefinders Resources
Assuming the 90 days horizon Tudor Gold Corp is expected to under-perform the Orefinders Resources. But the pink sheet apears to be less risky and, when comparing its historical volatility, Tudor Gold Corp is 1.16 times less risky than Orefinders Resources. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Orefinders Resources is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 5.02 in Orefinders Resources on October 26, 2024 and sell it today you would lose (0.81) from holding Orefinders Resources or give up 16.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
Tudor Gold Corp vs. Orefinders Resources
Performance |
| Timeline |
| Tudor Gold Corp |
| Orefinders Resources |
Tudor Gold and Orefinders Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tudor Gold and Orefinders Resources
The main advantage of trading using opposite Tudor Gold and Orefinders Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tudor Gold position performs unexpectedly, Orefinders Resources 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 Orefinders Resources will offset losses from the drop in Orefinders Resources' long position.| Tudor Gold vs. Fremont Gold | Tudor Gold vs. Norsemont Mining | Tudor Gold vs. Hummingbird Resources PLC | Tudor Gold vs. Rio2 Limited |
| Orefinders Resources vs. Lavras Gold Corp | Orefinders Resources vs. TRU Precious Metals | Orefinders Resources vs. North Peak Resources | Orefinders Resources vs. Nine Mile 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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