Correlation Between Vista Gold and United States
Can any of the company-specific risk be diversified away by investing in both Vista Gold and United States 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 United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vista Gold and United States Antimony, you can compare the effects of market volatilities on Vista Gold and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Gold and United States.
Diversification Opportunities for Vista Gold and United States
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vista and United is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Vista Gold and United States Antimony in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Antimony 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Antimony has no effect on the direction of Vista Gold i.e., Vista Gold and United States go up and down completely randomly.
Pair Corralation between Vista Gold and United States
Considering the 90-day investment horizon Vista Gold is expected to generate 3.33 times less return on investment than United States. But when comparing it to its historical volatility, Vista Gold is 1.62 times less risky than United States. It trades about 0.06 of its potential returns per unit of risk. United States Antimony is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 33.00 in United States Antimony on September 3, 2024 and sell it today you would earn a total of 38.00 from holding United States Antimony or generate 115.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vista Gold vs. United States Antimony
Performance |
| Timeline |
| Vista Gold |
| United States Antimony |
Vista Gold and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vista Gold and United States
The main advantage of trading using opposite Vista Gold and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Gold position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Vista Gold vs. International Tower Hill | Vista Gold vs. Harmony Gold Mining | Vista Gold vs. Seabridge Gold | Vista Gold vs. IAMGold |
| United States vs. Syrah Resources Limited | United States vs. Nouveau Monde Graphite | United States vs. Trilogy Metals | United States vs. Global Atomic Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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