Correlation Between Endurance Gold and Tudor Gold

Can any of the company-specific risk be diversified away by investing in both Endurance Gold and Tudor 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 Endurance Gold and Tudor Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Endurance Gold and Tudor Gold Corp, you can compare the effects of market volatilities on Endurance Gold and Tudor 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 Endurance Gold with a short position of Tudor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endurance Gold and Tudor Gold.

Diversification Opportunities for Endurance Gold and Tudor Gold

0.47

Correlation Coefficient

Endurance Gold  Tudor Gold

Very weak diversification

The 3 months correlation between Endurance and Tudor is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Endurance Gold and Tudor Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tudor Gold Corp and Endurance 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 Endurance Gold are associated (or correlated) with Tudor Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tudor Gold Corp has no effect on the direction of Endurance Gold i.e., Endurance Gold and Tudor Gold go up and down completely randomly.

Pair Corralation between Endurance Gold and Tudor Gold

Assuming the 90 days horizon Endurance Gold is expected to under-perform the Tudor Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Endurance Gold is 1.02 times less risky than Tudor Gold. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Tudor Gold Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  80.00  in Tudor Gold Corp on September 4, 2024 and sell it today you would lose (20.00) from holding Tudor Gold Corp or give up 25.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Endurance Gold  vs.  Tudor Gold Corp

Endurance Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Endurance Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Tudor Gold Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tudor Gold Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Tudor Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Endurance Gold and Tudor Gold

The main advantage of trading using opposite Endurance Gold and Tudor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endurance Gold position performs unexpectedly, Tudor 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 Tudor Gold will offset losses from the drop in Tudor Gold's long position.

The idea behind Endurance Gold and Tudor Gold Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.