Correlation Between Vista Gold and US Gold
Can any of the company-specific risk be diversified away by investing in both Vista Gold and US 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 Vista Gold and US Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vista Gold and US Gold Corp, you can compare the effects of market volatilities on Vista Gold and US 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 Vista Gold with a short position of US Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Gold and US Gold.
Diversification Opportunities for Vista Gold and US Gold
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Vista and USAU is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Vista Gold and US Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Gold Corp 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 US Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Gold Corp has no effect on the direction of Vista Gold i.e., Vista Gold and US Gold go up and down completely randomly.
Pair Corralation between Vista Gold and US Gold
Considering the 90-day investment horizon Vista Gold is expected to generate 1.81 times less return on investment than US Gold. In addition to that, Vista Gold is 1.04 times more volatile than US Gold Corp. It trades about 0.03 of its total potential returns per unit of risk. US Gold Corp is currently generating about 0.05 per unit of volatility. If you would invest 416.00 in US Gold Corp on November 2, 2024 and sell it today you would earn a total of 323.00 from holding US Gold Corp or generate 77.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vista Gold vs. US Gold Corp
Performance |
| Timeline |
| Vista Gold |
| US Gold Corp |
Vista Gold and US Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vista Gold and US Gold
The main advantage of trading using opposite Vista Gold and US Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Gold position performs unexpectedly, US 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 US Gold will offset losses from the drop in US Gold's long position.| Vista Gold vs. International Tower Hill | Vista Gold vs. Harmony Gold Mining | Vista Gold vs. Seabridge Gold | Vista Gold vs. IAMGold |
| US Gold vs. Labrador Gold Corp | US Gold vs. Aurion Resources | US Gold vs. Puma Exploration | US Gold vs. Golden Star Resource |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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