Correlation Between Vista Gold and Taseko Mines

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

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

Diversification Opportunities for Vista Gold and Taseko Mines

-0.53

Correlation Coefficient

Vista Gold  Taseko Mines

Excellent diversification

The 3 months correlation between Vista and Taseko is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Vista Gold and Taseko Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taseko Mines 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 Taseko Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taseko Mines has no effect on the direction of Vista Gold i.e., Vista Gold and Taseko Mines go up and down completely randomly.

Pair Corralation between Vista Gold and Taseko Mines

Considering the 90-day investment horizon Vista Gold is expected to under-perform the Taseko Mines. In addition to that, Vista Gold is 1.05 times more volatile than Taseko Mines. It trades about -0.01 of its total potential returns per unit of risk. Taseko Mines is currently generating about 0.21 per unit of volatility. If you would invest  193.00  in Taseko Mines on May 7, 2025 and sell it today you would earn a total of  116.00  from holding Taseko Mines or generate 60.1% 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.  Taseko Mines

Vista Gold

Risk-Adjusted Performance

Weakest

Over the last 90 days Vista Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Vista Gold is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Taseko Mines

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Taseko Mines are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile technical and fundamental indicators, Taseko Mines sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vista Gold and Taseko Mines

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

The idea behind Vista Gold and Taseko Mines 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.