Correlation Between Yamana Gold and Visa
Can any of the company-specific risk be diversified away by investing in both Yamana Gold and Visa 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 Yamana Gold and Visa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yamana Gold and Visa Class A, you can compare the effects of market volatilities on Yamana Gold and Visa 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 Yamana Gold with a short position of Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yamana Gold and Visa.
Diversification Opportunities for Yamana Gold and Visa
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yamana and Visa is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Yamana Gold and Visa Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Class A and Yamana 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 Yamana Gold are associated (or correlated) with Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Class A has no effect on the direction of Yamana Gold i.e., Yamana Gold and Visa go up and down completely randomly.
Pair Corralation between Yamana Gold and Visa
If you would invest 585.00 in Yamana Gold on December 30, 2023 and sell it today you would earn a total of 0.00 from holding Yamana Gold or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 4.55% |
Values | Daily Returns |
Yamana Gold vs. Visa Class A
Performance |
Timeline |
Yamana Gold |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Visa Class A |
Yamana Gold and Visa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yamana Gold and Visa
The main advantage of trading using opposite Yamana Gold and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yamana Gold position performs unexpectedly, Visa 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 Visa will offset losses from the drop in Visa's long position.Yamana Gold vs. Harmony Gold Mining | Yamana Gold vs. Mangazeya Mining | Yamana Gold vs. Avarone Metals | Yamana Gold vs. Falcon Metals Limited |
Visa vs. MDB Capital Holdings | Visa vs. Orix Corp Ads | Visa vs. LendingClub Corp | Visa vs. Lexinfintech Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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