Correlation Between Tudor Gold and Enduro Metals
Can any of the company-specific risk be diversified away by investing in both Tudor Gold and Enduro Metals 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 Enduro Metals 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 Enduro Metals Corp, you can compare the effects of market volatilities on Tudor Gold and Enduro Metals 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 Enduro Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tudor Gold and Enduro Metals.
Diversification Opportunities for Tudor Gold and Enduro Metals
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tudor and Enduro is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Tudor Gold Corp and Enduro Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enduro Metals Corp 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 Enduro Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enduro Metals Corp has no effect on the direction of Tudor Gold i.e., Tudor Gold and Enduro Metals go up and down completely randomly.
Pair Corralation between Tudor Gold and Enduro Metals
Assuming the 90 days horizon Tudor Gold Corp is expected to under-perform the Enduro Metals. But the stock apears to be less risky and, when comparing its historical volatility, Tudor Gold Corp is 1.55 times less risky than Enduro Metals. The stock trades about -0.33 of its potential returns per unit of risk. The Enduro Metals Corp is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Enduro Metals Corp on September 5, 2024 and sell it today you would lose (5.00) from holding Enduro Metals Corp or give up 22.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tudor Gold Corp vs. Enduro Metals Corp
Performance |
| Timeline |
| Tudor Gold Corp |
| Enduro Metals Corp |
Tudor Gold and Enduro Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tudor Gold and Enduro Metals
The main advantage of trading using opposite Tudor Gold and Enduro Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tudor Gold position performs unexpectedly, Enduro Metals 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 Enduro Metals will offset losses from the drop in Enduro Metals' long position.| Tudor Gold vs. Teuton Resources Corp | Tudor Gold vs. American Creek Resources | Tudor Gold vs. Freegold Ventures Limited | Tudor Gold vs. Dolly Varden Silver |
| Enduro Metals vs. Scottie Resources Corp | Enduro Metals vs. Goliath Resources | Enduro Metals vs. Tudor Gold Corp | Enduro Metals vs. Brixton 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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