Correlation Between SPACE and GMV Minerals
Can any of the company-specific risk be diversified away by investing in both SPACE 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 SPACE and GMV Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPACE and GMV Minerals, you can compare the effects of market volatilities on SPACE 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 SPACE with a short position of GMV Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPACE and GMV Minerals.
Diversification Opportunities for SPACE and GMV Minerals
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPACE and GMV is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SPACE and GMV Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMV Minerals and SPACE 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 SPACE 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 SPACE i.e., SPACE and GMV Minerals go up and down completely randomly.
Pair Corralation between SPACE and GMV Minerals
Assuming the 90 days horizon SPACE is expected to generate 0.73 times more return on investment than GMV Minerals. However, SPACE is 1.36 times less risky than GMV Minerals. It trades about 0.12 of its potential returns per unit of risk. GMV Minerals is currently generating about -0.08 per unit of risk. If you would invest 44.00 in SPACE on September 12, 2024 and sell it today you would earn a total of 6.00 from holding SPACE or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SPACE vs. GMV Minerals
Performance |
| Timeline |
| SPACE |
| GMV Minerals |
SPACE and GMV Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPACE and GMV Minerals
The main advantage of trading using opposite SPACE and GMV Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPACE 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.The idea behind SPACE and GMV Minerals 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.| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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