Correlation Between VVC Exploration and Dundee Precious

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

By analyzing existing cross correlation between VVC Exploration and Dundee Precious Metals, you can compare the effects of market volatilities on VVC Exploration and Dundee Precious 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 VVC Exploration with a short position of Dundee Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of VVC Exploration and Dundee Precious.

Diversification Opportunities for VVC Exploration and Dundee Precious

0.0

Correlation Coefficient

VVC Exploration  Dundee Precious

Pay attention - limited upside

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

Pair Corralation between VVC Exploration and Dundee Precious

If you would invest  1,380  in Dundee Precious Metals on May 20, 2025 and sell it today you would earn a total of  397.00  from holding Dundee Precious Metals or generate 28.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

VVC Exploration  vs.  Dundee Precious Metals

VVC Exploration

Risk-Adjusted Performance

Weakest

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

Dundee Precious Metals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dundee Precious Metals are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Dundee Precious reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VVC Exploration and Dundee Precious

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

The idea behind VVC Exploration and Dundee Precious Metals 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..