Correlation Between Vista Gold and Altus Group
Can any of the company-specific risk be diversified away by investing in both Vista Gold and Altus Group 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 Vista Gold and Altus Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vista Gold and Altus Group Limited, you can compare the effects of market volatilities on Vista Gold and Altus Group 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 Vista Gold with a short position of Altus Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Gold and Altus Group.
Diversification Opportunities for Vista Gold and Altus Group
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vista and Altus is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Vista Gold and Altus Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altus Group Limited and Vista 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 Vista Gold are associated (or correlated) with Altus Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altus Group Limited has no effect on the direction of Vista Gold i.e., Vista Gold and Altus Group go up and down completely randomly.
Pair Corralation between Vista Gold and Altus Group
Assuming the 90 days trading horizon Vista Gold is expected to generate 2.35 times more return on investment than Altus Group. However, Vista Gold is 2.35 times more volatile than Altus Group Limited. It trades about 0.07 of its potential returns per unit of risk. Altus Group Limited is currently generating about 0.09 per unit of risk. If you would invest 66.00 in Vista Gold on September 3, 2024 and sell it today you would earn a total of 19.00 from holding Vista Gold or generate 28.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vista Gold vs. Altus Group Limited
Performance |
| Timeline |
| Vista Gold |
| Altus Group Limited |
Vista Gold and Altus Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vista Gold and Altus Group
The main advantage of trading using opposite Vista Gold and Altus Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Gold position performs unexpectedly, Altus Group 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 Altus Group will offset losses from the drop in Altus Group's long position.| Vista Gold vs. Trigon Metals | Vista Gold vs. RTG Mining | Vista Gold vs. Seabridge Gold | Vista Gold vs. Fremont Gold |
| Altus Group vs. Colliers International Group | Altus Group vs. FirstService Corp | Altus Group vs. Winpak | Altus Group vs. Ritchie Bros Auctioneers |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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