Correlation Between Tudor Gold and Northern Superior
Can any of the company-specific risk be diversified away by investing in both Tudor Gold and Northern Superior 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 Northern Superior 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 Northern Superior Resources, you can compare the effects of market volatilities on Tudor Gold and Northern Superior 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 Northern Superior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tudor Gold and Northern Superior.
Diversification Opportunities for Tudor Gold and Northern Superior
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tudor and Northern is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Tudor Gold Corp and Northern Superior Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Superior 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 Northern Superior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Superior has no effect on the direction of Tudor Gold i.e., Tudor Gold and Northern Superior go up and down completely randomly.
Pair Corralation between Tudor Gold and Northern Superior
Assuming the 90 days horizon Tudor Gold is expected to generate 1.9 times less return on investment than Northern Superior. But when comparing it to its historical volatility, Tudor Gold Corp is 1.27 times less risky than Northern Superior. It trades about 0.09 of its potential returns per unit of risk. Northern Superior Resources is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 79.00 in Northern Superior Resources on July 26, 2025 and sell it today you would earn a total of 55.00 from holding Northern Superior Resources or generate 69.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tudor Gold Corp vs. Northern Superior Resources
Performance |
| Timeline |
| Tudor Gold Corp |
| Northern Superior |
Tudor Gold and Northern Superior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tudor Gold and Northern Superior
The main advantage of trading using opposite Tudor Gold and Northern Superior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tudor Gold position performs unexpectedly, Northern Superior 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 Northern Superior will offset losses from the drop in Northern Superior's long position.| Tudor Gold vs. Mayfair Gold Corp | Tudor Gold vs. Loncor Gold | Tudor Gold vs. Northern Superior Resources | Tudor Gold vs. Radisson Mining Resources |
| Northern Superior vs. Gold Reserve | Northern Superior vs. Canamex Gold Corp | Northern Superior vs. Banyan Gold Corp | Northern Superior vs. Tudor Gold 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 Stocks Directory module to find actively traded stocks across global markets.
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