Correlation Between Guskin Gold and GMV Minerals
Can any of the company-specific risk be diversified away by investing in both Guskin Gold and GMV Minerals 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 Guskin Gold and GMV Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guskin Gold Corp and GMV Minerals, you can compare the effects of market volatilities on Guskin Gold and GMV Minerals 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 Guskin Gold with a short position of GMV Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guskin Gold and GMV Minerals.
Diversification Opportunities for Guskin Gold and GMV Minerals
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guskin and GMV is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Guskin Gold Corp and GMV Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMV Minerals and Guskin 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 Guskin Gold Corp are associated (or correlated) with GMV Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMV Minerals has no effect on the direction of Guskin Gold i.e., Guskin Gold and GMV Minerals go up and down completely randomly.
Pair Corralation between Guskin Gold and GMV Minerals
Given the investment horizon of 90 days Guskin Gold Corp is expected to generate 15.06 times more return on investment than GMV Minerals. However, Guskin Gold is 15.06 times more volatile than GMV Minerals. It trades about 0.1 of its potential returns per unit of risk. GMV Minerals is currently generating about -0.06 per unit of risk. If you would invest 0.37 in Guskin Gold Corp on October 24, 2024 and sell it today you would lose (0.36) from holding Guskin Gold Corp or give up 97.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Guskin Gold Corp vs. GMV Minerals
Performance |
| Timeline |
| Guskin Gold Corp |
| GMV Minerals |
Guskin Gold and GMV Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guskin Gold and GMV Minerals
The main advantage of trading using opposite Guskin Gold and GMV Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guskin Gold position performs unexpectedly, GMV Minerals 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 GMV Minerals will offset losses from the drop in GMV Minerals' long position.| Guskin Gold vs. GMV Minerals | Guskin Gold vs. Antilles Gold Limited | Guskin Gold vs. Q2 Metals Corp | Guskin Gold vs. Joshua Gold Resources |
| GMV Minerals vs. Antilles Gold Limited | GMV Minerals vs. Guskin Gold Corp | GMV Minerals vs. Q2 Metals Corp | GMV Minerals vs. Bluestone 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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