Correlation Between Loncor Resources and Tudor Gold
Can any of the company-specific risk be diversified away by investing in both Loncor 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 Loncor 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 Loncor Resources and Tudor Gold Corp, you can compare the effects of market volatilities on Loncor 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 Loncor Resources with a short position of Tudor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loncor Resources and Tudor Gold.
Diversification Opportunities for Loncor Resources and Tudor Gold
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Loncor and Tudor is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Loncor Resources 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 Loncor 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 Loncor Resources 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 Loncor Resources i.e., Loncor Resources and Tudor Gold go up and down completely randomly.
Pair Corralation between Loncor Resources and Tudor Gold
Assuming the 90 days horizon Loncor Resources is expected to generate 0.48 times more return on investment than Tudor Gold. However, Loncor Resources is 2.08 times less risky than Tudor Gold. It trades about 0.26 of its potential returns per unit of risk. Tudor Gold Corp is currently generating about 0.1 per unit of risk. If you would invest 81.00 in Loncor Resources on September 3, 2025 and sell it today you would earn a total of 47.00 from holding Loncor Resources or generate 58.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loncor Resources vs. Tudor Gold Corp
Performance |
| Timeline |
| Loncor Resources |
| Tudor Gold Corp |
Loncor Resources and Tudor Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loncor Resources and Tudor Gold
The main advantage of trading using opposite Loncor Resources and Tudor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loncor 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.| Loncor Resources vs. Primaris Retail RE | Loncor Resources vs. Micron Technology, | Loncor Resources vs. Leons Furniture Limited | Loncor Resources vs. Gfl Environmental Holdings |
| Tudor Gold vs. Mogotes Metals | Tudor Gold vs. Upstart Investments | Tudor Gold vs. Partners Value Investments | Tudor Gold vs. CNJ Capital Investments |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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