Correlation Between GCM Grosvenor and GCM Mining
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor 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 GCM Grosvenor and GCM 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 GCM Mining Corp, you can compare the effects of market volatilities on GCM Grosvenor 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 GCM Grosvenor with a short position of GCM Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and GCM Mining.
Diversification Opportunities for GCM Grosvenor and GCM Mining
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GCM and GCM is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor 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 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 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 GCM Grosvenor i.e., GCM Grosvenor and GCM Mining go up and down completely randomly.
Pair Corralation between GCM Grosvenor and GCM Mining
If you would invest 113.00 in GCM Grosvenor on October 22, 2024 and sell it today you would earn a total of 45.00 from holding GCM Grosvenor or generate 39.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
GCM Grosvenor vs. GCM Mining Corp
Performance |
| Timeline |
| GCM Grosvenor |
| GCM Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GCM Grosvenor and GCM Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and GCM Mining
The main advantage of trading using opposite GCM Grosvenor and GCM Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor 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.| GCM Grosvenor vs. GCM Grosvenor | GCM Grosvenor vs. Glory Star New | GCM Grosvenor vs. Eos Energy Enterprises |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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