Correlation Between Bluestone Resources and Vista Gold
Can any of the company-specific risk be diversified away by investing in both Bluestone Resources 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 Bluestone Resources and Vista Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluestone Resources and Vista Gold, you can compare the effects of market volatilities on Bluestone Resources 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 Bluestone Resources with a short position of Vista Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and Vista Gold.
Diversification Opportunities for Bluestone Resources and Vista Gold
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bluestone and Vista is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and Vista Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vista Gold and Bluestone 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 Bluestone Resources 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 Bluestone Resources i.e., Bluestone Resources and Vista Gold go up and down completely randomly.
Pair Corralation between Bluestone Resources and Vista Gold
Assuming the 90 days horizon Bluestone Resources is expected to generate 1.42 times less return on investment than Vista Gold. In addition to that, Bluestone Resources is 1.45 times more volatile than Vista Gold. It trades about 0.03 of its total potential returns per unit of risk. Vista Gold is currently generating about 0.05 per unit of volatility. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluestone Resources vs. Vista Gold
Performance |
| Timeline |
| Bluestone Resources |
| Vista Gold |
Bluestone Resources and Vista Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluestone Resources and Vista Gold
The main advantage of trading using opposite Bluestone Resources and Vista Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources 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.| Bluestone Resources vs. Minnova Corp | Bluestone Resources vs. Argo Gold | Bluestone Resources vs. Advance Gold Corp | Bluestone Resources 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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