Correlation Between Scottie Resources and Tudor Gold

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

Diversification Opportunities for Scottie Resources and Tudor Gold

-0.19

Correlation Coefficient

Scottie Resources  Tudor Gold

Good diversification

The 3 months correlation between Scottie and Tudor is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Scottie 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 Scottie 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 Scottie 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 Scottie Resources i.e., Scottie Resources and Tudor Gold go up and down completely randomly.

Pair Corralation between Scottie Resources and Tudor Gold

Assuming the 90 days trading horizon Scottie Resources Corp is expected to generate 0.96 times more return on investment than Tudor Gold. However, Scottie Resources Corp is 1.04 times less risky than Tudor Gold. It trades about 0.06 of its potential returns per unit of risk. Tudor Gold Corp is currently generating about -0.04 per unit of risk. If you would invest  86.00  in Scottie Resources Corp on April 24, 2025 and sell it today you would earn a total of  8.00  from holding Scottie Resources Corp or generate 9.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Scottie Resources Corp  vs.  Tudor Gold Corp

Scottie Resources Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Scottie Resources Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Scottie Resources may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Scottie Resources and Tudor Gold

The main advantage of trading using opposite Scottie Resources and Tudor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scottie 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 Scottie 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.