Correlation Between Angkor Resources and Tudor Gold

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

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

Diversification Opportunities for Angkor Resources and Tudor Gold

-0.11

Correlation Coefficient

Angkor Resources  Tudor Gold

Good diversification

The 3 months correlation between Angkor and Tudor is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Angkor Resources Corp 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 Angkor Resources 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 Angkor Resources Corp 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 Angkor Resources i.e., Angkor Resources and Tudor Gold go up and down completely randomly.

Pair Corralation between Angkor Resources and Tudor Gold

Assuming the 90 days horizon Angkor Resources Corp is expected to generate 1.74 times more return on investment than Tudor Gold. However, Angkor Resources is 1.74 times more volatile than Tudor Gold Corp. It trades about 0.31 of its potential returns per unit of risk. Tudor Gold Corp is currently generating about 0.0 per unit of risk. If you would invest  6.01  in Angkor Resources Corp on December 20, 2024 and sell it today you would earn a total of  12.99  from holding Angkor Resources Corp or generate 216.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Angkor Resources Corp  vs.  Tudor Gold Corp

Angkor Resources Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Angkor Resources Corp are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Angkor Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Tudor Gold Corp

Risk-Adjusted Performance

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 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 Angkor Resources and Tudor Gold

The main advantage of trading using opposite Angkor Resources and Tudor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angkor Resources 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 Angkor Resources Corp 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.