Correlation Between Minnova Corp and Viva Gold

Can any of the company-specific risk be diversified away by investing in both Minnova Corp and Viva 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 Minnova Corp and Viva Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Minnova Corp and Viva Gold Corp, you can compare the effects of market volatilities on Minnova Corp and Viva 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 Minnova Corp with a short position of Viva Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minnova Corp and Viva Gold.

Diversification Opportunities for Minnova Corp and Viva Gold

-0.09

Correlation Coefficient

Minnova Corp  Viva Gold

Good diversification

The 3 months correlation between Minnova and Viva is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Minnova Corp and Viva Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viva Gold Corp and Minnova Corp 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 Minnova Corp are associated (or correlated) with Viva Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viva Gold Corp has no effect on the direction of Minnova Corp i.e., Minnova Corp and Viva Gold go up and down completely randomly.

Pair Corralation between Minnova Corp and Viva Gold

If you would invest  10.00  in Viva Gold Corp on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Viva Gold Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Minnova Corp  vs.  Viva Gold Corp

Minnova Corp

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Minnova Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Minnova Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Viva Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Viva Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Minnova Corp and Viva Gold

The main advantage of trading using opposite Minnova Corp and Viva Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minnova Corp position performs unexpectedly, Viva 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 Viva Gold will offset losses from the drop in Viva Gold's long position.

The idea behind Minnova Corp and Viva Gold Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.