Correlation Between Viva Gold and Getchell Gold
Can any of the company-specific risk be diversified away by investing in both Viva Gold and Getchell 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 Viva Gold and Getchell Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viva Gold Corp and Getchell Gold Corp, you can compare the effects of market volatilities on Viva Gold and Getchell 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 Viva Gold with a short position of Getchell Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viva Gold and Getchell Gold.
Diversification Opportunities for Viva Gold and Getchell Gold
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Viva and Getchell is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Viva Gold Corp and Getchell Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getchell Gold Corp and Viva 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 Viva Gold Corp are associated (or correlated) with Getchell Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getchell Gold Corp has no effect on the direction of Viva Gold i.e., Viva Gold and Getchell Gold go up and down completely randomly.
Pair Corralation between Viva Gold and Getchell Gold
Assuming the 90 days horizon Viva Gold Corp is expected to generate 1.6 times more return on investment than Getchell Gold. However, Viva Gold is 1.6 times more volatile than Getchell Gold Corp. It trades about 0.01 of its potential returns per unit of risk. Getchell Gold Corp is currently generating about -0.13 per unit of risk. If you would invest 13.00 in Viva Gold Corp on September 1, 2024 and sell it today you would lose (1.00) from holding Viva Gold Corp or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viva Gold Corp vs. Getchell Gold Corp
Performance |
| Timeline |
| Viva Gold Corp |
| Getchell Gold Corp |
Viva Gold and Getchell Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viva Gold and Getchell Gold
The main advantage of trading using opposite Viva Gold and Getchell Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viva Gold position performs unexpectedly, Getchell 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 Getchell Gold will offset losses from the drop in Getchell Gold's long position.| Viva Gold vs. Aurion Resources | Viva Gold vs. Rio2 Limited | Viva Gold vs. Palamina Corp | Viva Gold vs. BTU Metals Corp |
| Getchell Gold vs. White Gold Corp | Getchell Gold vs. Phenom Resources Corp | Getchell Gold vs. Revival Gold | Getchell Gold vs. Omai Gold Mines |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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