Correlation Between RTG Mining and Vista Gold
Can any of the company-specific risk be diversified away by investing in both RTG Mining 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 RTG Mining and Vista Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RTG Mining and Vista Gold, you can compare the effects of market volatilities on RTG Mining 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 RTG Mining with a short position of Vista Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of RTG Mining and Vista Gold.
Diversification Opportunities for RTG Mining and Vista Gold
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between RTG and Vista is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding RTG Mining and Vista Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vista Gold and RTG Mining 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 RTG Mining 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 RTG Mining i.e., RTG Mining and Vista Gold go up and down completely randomly.
Pair Corralation between RTG Mining and Vista Gold
Assuming the 90 days trading horizon RTG Mining is expected to under-perform the Vista Gold. In addition to that, RTG Mining is 4.68 times more volatile than Vista Gold. It trades about -0.1 of its total potential returns per unit of risk. Vista Gold is currently generating about 0.34 per unit of volatility. If you would invest 81.00 in Vista Gold on November 4, 2024 and sell it today you would earn a total of 16.00 from holding Vista Gold or generate 19.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RTG Mining vs. Vista Gold
Performance |
| Timeline |
| RTG Mining |
| Vista Gold |
RTG Mining and Vista Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RTG Mining and Vista Gold
The main advantage of trading using opposite RTG Mining and Vista Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RTG Mining 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.| RTG Mining vs. SPoT Coffee | RTG Mining vs. McEwen Mining | RTG Mining vs. South Pacific Metals | RTG Mining vs. NeXGold Mining 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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