Correlation Between GCM Grosvenor and Atico Mining
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Atico 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 GCM Grosvenor and Atico Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Atico Mining, you can compare the effects of market volatilities on GCM Grosvenor and Atico 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 GCM Grosvenor with a short position of Atico Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Atico Mining.
Diversification Opportunities for GCM Grosvenor and Atico Mining
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GCM and Atico is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Atico Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atico Mining and GCM Grosvenor 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 GCM Grosvenor are associated (or correlated) with Atico Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atico Mining has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Atico Mining go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Atico Mining
Assuming the 90 days horizon GCM Grosvenor is expected to generate 25.6 times more return on investment than Atico Mining. However, GCM Grosvenor is 25.6 times more volatile than Atico Mining. It trades about 0.13 of its potential returns per unit of risk. Atico Mining is currently generating about -0.04 per unit of risk. If you would invest 58.00 in GCM Grosvenor on August 29, 2024 and sell it today you would earn a total of 68.00 from holding GCM Grosvenor or generate 117.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.13% |
| Values | Daily Returns |
GCM Grosvenor vs. Atico Mining
Performance |
| Timeline |
| GCM Grosvenor |
| Atico Mining |
GCM Grosvenor and Atico Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and Atico Mining
The main advantage of trading using opposite GCM Grosvenor and Atico Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Atico 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 Atico Mining will offset losses from the drop in Atico Mining's long position.The idea behind GCM Grosvenor and Atico Mining 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.| Atico Mining vs. Silver Hammer Mining | Atico Mining vs. Reyna Silver Corp | Atico Mining vs. Guanajuato Silver | Atico Mining vs. Silver One Resources |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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