Correlation Between Vista Gold and Mullen
Can any of the company-specific risk be diversified away by investing in both Vista Gold and Mullen 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 Mullen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vista Gold and Mullen Group, you can compare the effects of market volatilities on Vista Gold and Mullen 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 Mullen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Gold and Mullen.
Diversification Opportunities for Vista Gold and Mullen
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vista and Mullen is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Vista Gold and Mullen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mullen Group 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 Mullen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mullen Group has no effect on the direction of Vista Gold i.e., Vista Gold and Mullen go up and down completely randomly.
Pair Corralation between Vista Gold and Mullen
Assuming the 90 days trading horizon Vista Gold is expected to generate 3.09 times more return on investment than Mullen. However, Vista Gold is 3.09 times more volatile than Mullen Group. It trades about 0.03 of its potential returns per unit of risk. Mullen Group is currently generating about 0.03 per unit of risk. If you would invest 69.00 in Vista Gold on September 12, 2024 and sell it today you would earn a total of 15.00 from holding Vista Gold or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vista Gold vs. Mullen Group
Performance |
| Timeline |
| Vista Gold |
| Mullen Group |
Vista Gold and Mullen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vista Gold and Mullen
The main advantage of trading using opposite Vista Gold and Mullen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Gold position performs unexpectedly, Mullen 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 Mullen will offset losses from the drop in Mullen's long position.| Vista Gold vs. Trigon Metals | Vista Gold vs. RTG Mining | Vista Gold vs. Seabridge Gold | Vista Gold vs. Fremont Gold |
| Mullen vs. Pason Systems | Mullen vs. Westshore Terminals Investment | Mullen vs. Superior Plus Corp | Mullen vs. Gibson Energy |
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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