Correlation Between Northern Superior and Tudor Gold
Can any of the company-specific risk be diversified away by investing in both Northern Superior 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 Northern Superior and Tudor Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northern Superior Resources and Tudor Gold Corp, you can compare the effects of market volatilities on Northern Superior 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 Northern Superior with a short position of Tudor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Superior and Tudor Gold.
Diversification Opportunities for Northern Superior and Tudor Gold
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Northern and Tudor is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Northern Superior 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 Northern Superior 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 Northern Superior 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 Northern Superior i.e., Northern Superior and Tudor Gold go up and down completely randomly.
Pair Corralation between Northern Superior and Tudor Gold
Assuming the 90 days horizon Northern Superior Resources is expected to generate 1.3 times more return on investment than Tudor Gold. However, Northern Superior is 1.3 times more volatile than Tudor Gold Corp. It trades about 0.12 of its potential returns per unit of risk. Tudor Gold Corp is currently generating about 0.12 per unit of risk. If you would invest 121.00 in Northern Superior Resources on August 2, 2025 and sell it today you would earn a total of 64.00 from holding Northern Superior Resources or generate 52.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern Superior Resources vs. Tudor Gold Corp
Performance |
| Timeline |
| Northern Superior |
| Tudor Gold Corp |
Northern Superior and Tudor Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern Superior and Tudor Gold
The main advantage of trading using opposite Northern Superior and Tudor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Superior 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.| Northern Superior vs. Tudor Gold Corp | Northern Superior vs. Mayfair Gold Corp | Northern Superior vs. NeXGold Mining Corp | Northern Superior vs. Minera Alamos |
| Tudor Gold vs. Mayfair Gold Corp | Tudor Gold vs. Loncor Resources | Tudor Gold vs. Northern Superior Resources | Tudor Gold vs. NeXGold Mining Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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