Correlation Between Vista Gold and Argenta Silver

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

By analyzing existing cross correlation between Vista Gold and Argenta Silver Corp, you can compare the effects of market volatilities on Vista Gold and Argenta Silver 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 Argenta Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Gold and Argenta Silver.

Diversification Opportunities for Vista Gold and Argenta Silver

0.0

Correlation Coefficient

Vista Gold  Argenta Silver

Pay attention - limited upside

The 3 months correlation between Vista and Argenta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vista Gold and Argenta Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argenta Silver 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 Argenta Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argenta Silver Corp has no effect on the direction of Vista Gold i.e., Vista Gold and Argenta Silver go up and down completely randomly.

Pair Corralation between Vista Gold and Argenta Silver

If you would invest  82.00  in Vista Gold on October 7, 2024 and sell it today you would lose (1.00) from holding Vista Gold or give up 1.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Vista Gold  vs.  Argenta Silver Corp

Vista Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vista Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Argenta Silver Corp

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Argenta Silver Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Argenta Silver is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Vista Gold and Argenta Silver

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

The idea behind Vista Gold and Argenta Silver 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.