Correlation Between Vista Gold and Avino Silver

Can any of the company-specific risk be diversified away by investing in both Vista Gold and Avino 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 Avino 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 Avino Silver Gold, you can compare the effects of market volatilities on Vista Gold and Avino 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 Avino Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Gold and Avino Silver.

Diversification Opportunities for Vista Gold and Avino Silver

0.5

Correlation Coefficient

Vista Gold  Avino Silver

Very weak diversification

The 3 months correlation between Vista and Avino is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Vista Gold and Avino Silver Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avino Silver Gold 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 Avino Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avino Silver Gold has no effect on the direction of Vista Gold i.e., Vista Gold and Avino Silver go up and down completely randomly.

Pair Corralation between Vista Gold and Avino Silver

Considering the 90-day investment horizon Vista Gold is expected to under-perform the Avino Silver. But the stock apears to be less risky and, when comparing its historical volatility, Vista Gold is 1.33 times less risky than Avino Silver. The stock trades about -0.13 of its potential returns per unit of risk. The Avino Silver Gold is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  110.00  in Avino Silver Gold on September 28, 2024 and sell it today you would lose (17.00) from holding Avino Silver Gold or give up 15.45% of portfolio value over 90 days.

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

Vista Gold  vs.  Avino Silver Gold

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 unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Avino Silver Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Avino Silver Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Vista Gold and Avino Silver

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

The idea behind Vista Gold and Avino Silver 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.