Correlation Between Vista Gold and AGEDB Technology

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

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

Diversification Opportunities for Vista Gold and AGEDB Technology

-0.49

Correlation Coefficient

Vista Gold  AGEDB Technology

Very good diversification

The 3 months correlation between Vista and AGEDB is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Vista Gold and AGEDB Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGEDB Technology 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 AGEDB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGEDB Technology has no effect on the direction of Vista Gold i.e., Vista Gold and AGEDB Technology go up and down completely randomly.

Pair Corralation between Vista Gold and AGEDB Technology

Assuming the 90 days trading horizon Vista Gold is expected to generate 0.33 times more return on investment than AGEDB Technology. However, Vista Gold is 3.0 times less risky than AGEDB Technology. It trades about 0.14 of its potential returns per unit of risk. AGEDB Technology is currently generating about -0.1 per unit of risk. If you would invest  81.00  in Vista Gold on December 21, 2024 and sell it today you would earn a total of  27.00  from holding Vista Gold or generate 33.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Vista Gold  vs.  AGEDB Technology

Vista Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vista Gold are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Vista Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

AGEDB Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGEDB Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Vista Gold and AGEDB Technology

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

The idea behind Vista Gold and AGEDB Technology 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 Stocks Directory module to find actively traded stocks across global markets.