Correlation Between Marathon Gold and Tudor Gold

Can any of the company-specific risk be diversified away by investing in both Marathon 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 Marathon 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 Marathon Gold and Tudor Gold Corp, you can compare the effects of market volatilities on Marathon 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 Marathon Gold with a short position of Tudor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Gold and Tudor Gold.

Diversification Opportunities for Marathon Gold and Tudor Gold

-0.05

Correlation Coefficient

Marathon Gold  Tudor Gold

Good diversification

The 3 months correlation between Marathon and Tudor is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Marathon 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 Marathon 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 Marathon 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 Marathon Gold i.e., Marathon Gold and Tudor Gold go up and down completely randomly.

Pair Corralation between Marathon Gold and Tudor Gold

If you would invest  64.00  in Marathon Gold on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Marathon Gold or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Marathon Gold  vs.  Tudor Gold Corp

Marathon Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marathon Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Marathon Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Tudor Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tudor Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Marathon Gold and Tudor Gold

The main advantage of trading using opposite Marathon Gold and Tudor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon 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 Marathon 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.