Correlation Between Tudor Gold and Sixty North
Can any of the company-specific risk be diversified away by investing in both Tudor Gold and Sixty North 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 Sixty North 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 Sixty North Gold, you can compare the effects of market volatilities on Tudor Gold and Sixty North 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 Sixty North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tudor Gold and Sixty North.
Diversification Opportunities for Tudor Gold and Sixty North
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tudor and Sixty is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Tudor Gold Corp and Sixty North Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixty North 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 Sixty North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixty North Gold has no effect on the direction of Tudor Gold i.e., Tudor Gold and Sixty North go up and down completely randomly.
Pair Corralation between Tudor Gold and Sixty North
Assuming the 90 days horizon Tudor Gold Corp is expected to under-perform the Sixty North. But the pink sheet apears to be less risky and, when comparing its historical volatility, Tudor Gold Corp is 4.18 times less risky than Sixty North. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Sixty North Gold is currently generating about 0.07 of returns per unit of risk over similar time horizon. 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 |
Tudor Gold Corp vs. Sixty North Gold
Performance |
| Timeline |
| Tudor Gold Corp |
| Sixty North Gold |
Tudor Gold and Sixty North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tudor Gold and Sixty North
The main advantage of trading using opposite Tudor Gold and Sixty North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tudor Gold position performs unexpectedly, Sixty North 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 Sixty North will offset losses from the drop in Sixty North's long position.| Tudor Gold vs. Fremont Gold | Tudor Gold vs. Norsemont Mining | Tudor Gold vs. Hummingbird Resources PLC | Tudor Gold vs. Rio2 Limited |
| Sixty North vs. Puma Exploration | Sixty North vs. Red Pine Exploration | Sixty North vs. Grande Portage Resources | Sixty North vs. Altamira Gold Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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