Correlation Between Vista Gold and United States

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

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

Diversification Opportunities for Vista Gold and United States

0.1

Correlation Coefficient

Vista Gold  United States

Average diversification

The 3 months correlation between Vista and United is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Vista Gold and United States Antimony in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Antimony 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Antimony has no effect on the direction of Vista Gold i.e., Vista Gold and United States go up and down completely randomly.

Pair Corralation between Vista Gold and United States

Considering the 90-day investment horizon Vista Gold is expected to generate 1.0 times less return on investment than United States. But when comparing it to its historical volatility, Vista Gold is 1.79 times less risky than United States. It trades about 0.18 of its potential returns per unit of risk. United States Antimony is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  180.00  in United States Antimony on December 28, 2024 and sell it today you would earn a total of  54.00  from holding United States Antimony or generate 30.0% 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.  United States Antimony

Vista Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vista Gold are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Vista Gold showed solid returns over the last few months and may actually be approaching a breakup point.

United States Antimony

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in United States Antimony are ranked lower than 7 (%) 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.

Pair Trading with Vista Gold and United States

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

The idea behind Vista Gold and United States Antimony 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.