Correlation Between Vista Gold and Quebecor
Can any of the company-specific risk be diversified away by investing in both Vista Gold and Quebecor 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 Quebecor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vista Gold and Quebecor, you can compare the effects of market volatilities on Vista Gold and Quebecor 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 Quebecor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Gold and Quebecor.
Diversification Opportunities for Vista Gold and Quebecor
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vista and Quebecor is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Vista Gold and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor 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 Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of Vista Gold i.e., Vista Gold and Quebecor go up and down completely randomly.
Pair Corralation between Vista Gold and Quebecor
Assuming the 90 days trading horizon Vista Gold is expected to generate 2.73 times more return on investment than Quebecor. However, Vista Gold is 2.73 times more volatile than Quebecor. It trades about -0.05 of its potential returns per unit of risk. Quebecor is currently generating about -0.15 per unit of risk. If you would invest 90.00 in Vista Gold on September 1, 2024 and sell it today you would lose (5.00) from holding Vista Gold or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vista Gold vs. Quebecor
Performance |
| Timeline |
| Vista Gold |
| Quebecor |
Vista Gold and Quebecor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vista Gold and Quebecor
The main advantage of trading using opposite Vista Gold and Quebecor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Gold position performs unexpectedly, Quebecor 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 Quebecor will offset losses from the drop in Quebecor's long position.| Vista Gold vs. Trigon Metals | Vista Gold vs. RTG Mining | Vista Gold vs. Seabridge Gold | Vista Gold vs. Fremont Gold |
| Quebecor vs. Cogeco Communications | Quebecor vs. Transcontinental | Quebecor vs. iA Financial | Quebecor vs. Saputo Inc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |