Correlation Between Sitka Gold and Visa
Can any of the company-specific risk be diversified away by investing in both Sitka Gold and Visa 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 Sitka Gold and Visa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sitka Gold Corp and Visa Class A, you can compare the effects of market volatilities on Sitka Gold and Visa 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 Sitka Gold with a short position of Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sitka Gold and Visa.
Diversification Opportunities for Sitka Gold and Visa
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sitka and Visa is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sitka Gold Corp and Visa Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Class A and Sitka 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 Sitka Gold Corp are associated (or correlated) with Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Class A has no effect on the direction of Sitka Gold i.e., Sitka Gold and Visa go up and down completely randomly.
Pair Corralation between Sitka Gold and Visa
Assuming the 90 days horizon Sitka Gold Corp is expected to under-perform the Visa. In addition to that, Sitka Gold is 4.83 times more volatile than Visa Class A. It trades about -0.07 of its total potential returns per unit of risk. Visa Class A is currently generating about 0.34 per unit of volatility. If you would invest 28,365 in Visa Class A on August 29, 2024 and sell it today you would earn a total of 2,817 from holding Visa Class A or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sitka Gold Corp vs. Visa Class A
Performance |
| Timeline |
| Sitka Gold Corp |
| Visa Class A |
Sitka Gold and Visa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sitka Gold and Visa
The main advantage of trading using opposite Sitka Gold and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sitka Gold position performs unexpectedly, Visa 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 Visa will offset losses from the drop in Visa's long position.| Sitka Gold vs. Aurion Resources | Sitka Gold vs. Minera Alamos | Sitka Gold vs. Rio2 Limited | Sitka Gold vs. Roscan Gold Corp |
| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |