Correlation Between Antioquia Gold and Viva Gold
Can any of the company-specific risk be diversified away by investing in both Antioquia Gold and Viva 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 Antioquia Gold and Viva Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antioquia Gold and Viva Gold Corp, you can compare the effects of market volatilities on Antioquia Gold and Viva 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 Antioquia Gold with a short position of Viva Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antioquia Gold and Viva Gold.
Diversification Opportunities for Antioquia Gold and Viva Gold
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Antioquia and Viva is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Antioquia Gold and Viva Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viva Gold Corp and Antioquia 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 Antioquia Gold are associated (or correlated) with Viva Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viva Gold Corp has no effect on the direction of Antioquia Gold i.e., Antioquia Gold and Viva Gold go up and down completely randomly.
Pair Corralation between Antioquia Gold and Viva Gold
Assuming the 90 days horizon Antioquia Gold is expected to generate 2.11 times more return on investment than Viva Gold. However, Antioquia Gold is 2.11 times more volatile than Viva Gold Corp. It trades about 0.21 of its potential returns per unit of risk. Viva Gold Corp is currently generating about 0.01 per unit of risk. If you would invest 1.00 in Antioquia Gold on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Antioquia Gold or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antioquia Gold vs. Viva Gold Corp
Performance |
| Timeline |
| Antioquia Gold |
| Viva Gold Corp |
Antioquia Gold and Viva Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antioquia Gold and Viva Gold
The main advantage of trading using opposite Antioquia Gold and Viva Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antioquia Gold position performs unexpectedly, Viva 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 Viva Gold will offset losses from the drop in Viva Gold's long position.| Antioquia Gold vs. Argo Gold | Antioquia Gold vs. Blue Star Gold | Antioquia Gold vs. Angkor Resources Corp | Antioquia Gold vs. Advance Gold Corp |
| Viva Gold vs. Aurion Resources | Viva Gold vs. Rio2 Limited | Viva Gold vs. Palamina Corp | Viva Gold vs. BTU Metals 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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