Correlation Between Gncc Capital and North Bay
Can any of the company-specific risk be diversified away by investing in both Gncc Capital and North Bay 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 Gncc Capital and North Bay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gncc Capital and North Bay Resources, you can compare the effects of market volatilities on Gncc Capital and North Bay 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 Gncc Capital with a short position of North Bay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gncc Capital and North Bay.
Diversification Opportunities for Gncc Capital and North Bay
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gncc and North is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Gncc Capital and North Bay Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Bay Resources and Gncc Capital 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 Gncc Capital are associated (or correlated) with North Bay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Bay Resources has no effect on the direction of Gncc Capital i.e., Gncc Capital and North Bay go up and down completely randomly.
Pair Corralation between Gncc Capital and North Bay
Given the investment horizon of 90 days Gncc Capital is expected to generate 5.36 times more return on investment than North Bay. However, Gncc Capital is 5.36 times more volatile than North Bay Resources. It trades about 0.09 of its potential returns per unit of risk. North Bay Resources is currently generating about 0.13 per unit of risk. If you would invest 0.00 in Gncc Capital on September 1, 2024 and sell it today you would earn a total of 0.01 from holding Gncc Capital or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Gncc Capital vs. North Bay Resources
Performance |
| Timeline |
| Gncc Capital |
| North Bay Resources |
Gncc Capital and North Bay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gncc Capital and North Bay
The main advantage of trading using opposite Gncc Capital and North Bay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gncc Capital position performs unexpectedly, North Bay 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 North Bay will offset losses from the drop in North Bay's long position.| Gncc Capital vs. Mining Global | Gncc Capital vs. New World Gold | Gncc Capital vs. American International Ventures | Gncc Capital vs. Rackla Metals |
| North Bay vs. Defiance Silver Corp | North Bay vs. HUMANA INC | North Bay vs. SCOR PK | North Bay vs. Aquagold International |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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