Correlation Between American Copper and GCM Mining
Can any of the company-specific risk be diversified away by investing in both American Copper and GCM Mining 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 American Copper and GCM Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Copper Development and GCM Mining Corp, you can compare the effects of market volatilities on American Copper and GCM Mining 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 American Copper with a short position of GCM Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Copper and GCM Mining.
Diversification Opportunities for American Copper and GCM Mining
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and GCM is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding American Copper Development and GCM Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCM Mining Corp and American Copper 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 American Copper Development are associated (or correlated) with GCM Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCM Mining Corp has no effect on the direction of American Copper i.e., American Copper and GCM Mining go up and down completely randomly.
Pair Corralation between American Copper and GCM Mining
If you would invest 4.20 in American Copper Development on November 3, 2024 and sell it today you would lose (1.80) from holding American Copper Development or give up 42.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
American Copper Development vs. GCM Mining Corp
Performance |
| Timeline |
| American Copper Deve |
| GCM Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Copper and GCM Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Copper and GCM Mining
The main advantage of trading using opposite American Copper and GCM Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Copper position performs unexpectedly, GCM Mining 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 GCM Mining will offset losses from the drop in GCM Mining's long position.| American Copper vs. Marine Products | American Copper vs. ANTA Sports Products | American Copper vs. SunOpta | American Copper vs. Cardinal Health |
| GCM Mining vs. Silver Tiger Metals | GCM Mining vs. Defiance Silver Corp | GCM Mining vs. Summa Silver Corp | GCM Mining vs. AbraSilver Resource Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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