Correlation Between United States and Vista Gold

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

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

Diversification Opportunities for United States and Vista Gold

0.09

Correlation Coefficient

United States  Vista Gold

Significant diversification

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

Pair Corralation between United States and Vista Gold

Given the investment horizon of 90 days United States Antimony is expected to generate 3.49 times more return on investment than Vista Gold. However, United States is 3.49 times more volatile than Vista Gold. It trades about 0.15 of its potential returns per unit of risk. Vista Gold is currently generating about 0.04 per unit of risk. If you would invest  76.00  in United States Antimony on November 28, 2024 and sell it today you would earn a total of  71.00  from holding United States Antimony or generate 93.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

United States Antimony  vs.  Vista Gold

United States Antimony

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in United States Antimony are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, United States showed solid returns over the last few months and may actually be approaching a breakup point.

Vista Gold

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vista Gold are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Vista Gold may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with United States and Vista Gold

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

The idea behind United States Antimony and Vista Gold 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.