Correlation Between Equinox Gold and Victoria Gold

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

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

Diversification Opportunities for Equinox Gold and Victoria Gold

0.0

Correlation Coefficient

Equinox Gold  Victoria Gold

Pay attention - limited upside

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

Pair Corralation between Equinox Gold and Victoria Gold

If you would invest  565.00  in Equinox Gold Corp on September 11, 2024 and sell it today you would earn a total of  30.00  from holding Equinox Gold Corp or generate 5.31% return on investment over 90 days.

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

Equinox Gold Corp  vs.  Victoria Gold Corp

Equinox Gold Corp

Risk-Adjusted Performance

3 of 100

Insignificant

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

Victoria Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Victoria Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Victoria Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Equinox Gold and Victoria Gold

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

The idea behind Equinox Gold Corp and Victoria 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..