Correlation Between Tudor Gold and Angkor Resources

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

Diversification Opportunities for Tudor Gold and Angkor Resources

-0.11

Correlation Coefficient

Tudor Gold  Angkor Resources

Good diversification

The 3 months correlation between Tudor and Angkor is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Tudor Gold Corp and Angkor Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angkor Resources 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 Angkor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angkor Resources Corp has no effect on the direction of Tudor Gold i.e., Tudor Gold and Angkor Resources go up and down completely randomly.

Pair Corralation between Tudor Gold and Angkor Resources

Assuming the 90 days horizon Tudor Gold is expected to generate 317.94 times less return on investment than Angkor Resources. But when comparing it to its historical volatility, Tudor Gold Corp is 1.74 times less risky than Angkor Resources. It trades about 0.0 of its potential returns per unit of risk. Angkor Resources Corp is currently generating about 0.31 of returns per unit of risk over similar time horizon. 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

Tudor Gold Corp  vs.  Angkor Resources Corp

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.

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.

Pair Trading with Tudor Gold and Angkor Resources

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

The idea behind Tudor Gold Corp and Angkor Resources 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.