Correlation Between Asante Gold and Vista Gold
Can any of the company-specific risk be diversified away by investing in both Asante Gold and Vista 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 Asante Gold and Vista Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asante Gold and Vista Gold, you can compare the effects of market volatilities on Asante Gold and Vista 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 Asante Gold with a short position of Vista Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asante Gold and Vista Gold.
Diversification Opportunities for Asante Gold and Vista Gold
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asante and Vista is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Asante Gold and Vista Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vista Gold and Asante 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 Asante Gold are associated (or correlated) with Vista Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vista Gold has no effect on the direction of Asante Gold i.e., Asante Gold and Vista Gold go up and down completely randomly.
Pair Corralation between Asante Gold and Vista Gold
Assuming the 90 days horizon Asante Gold is expected to under-perform the Vista Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Asante Gold is 1.43 times less risky than Vista Gold. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Vista Gold is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 56.00 in Vista Gold on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Vista Gold or generate 8.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asante Gold vs. Vista Gold
Performance |
| Timeline |
| Asante Gold |
| Vista Gold |
Asante Gold and Vista Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asante Gold and Vista Gold
The main advantage of trading using opposite Asante Gold and Vista Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asante Gold position performs unexpectedly, Vista 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 Vista Gold will offset losses from the drop in Vista Gold's long position.| Asante Gold vs. Minnova Corp | Asante Gold vs. Argo Gold | Asante Gold vs. Advance Gold Corp | Asante Gold vs. Blue Star Gold |
| Vista Gold vs. International Tower Hill | Vista Gold vs. Harmony Gold Mining | Vista Gold vs. Seabridge Gold | Vista Gold vs. IAMGold |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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