Correlation Between GMK Norilskiy and Group Ten
Can any of the company-specific risk be diversified away by investing in both GMK Norilskiy and Group Ten 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 GMK Norilskiy and Group Ten into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMK Norilskiy Nikel and Group Ten Metals, you can compare the effects of market volatilities on GMK Norilskiy and Group Ten 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 GMK Norilskiy with a short position of Group Ten. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMK Norilskiy and Group Ten.
Diversification Opportunities for GMK Norilskiy and Group Ten
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GMK and Group is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GMK Norilskiy Nikel and Group Ten Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group Ten Metals and GMK Norilskiy 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 GMK Norilskiy Nikel are associated (or correlated) with Group Ten. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group Ten Metals has no effect on the direction of GMK Norilskiy i.e., GMK Norilskiy and Group Ten go up and down completely randomly.
Pair Corralation between GMK Norilskiy and Group Ten
If you would invest 12.00 in Group Ten Metals on September 12, 2024 and sell it today you would lose (2.84) from holding Group Ten Metals or give up 23.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
GMK Norilskiy Nikel vs. Group Ten Metals
Performance |
| Timeline |
| GMK Norilskiy Nikel |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Group Ten Metals |
GMK Norilskiy and Group Ten Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMK Norilskiy and Group Ten
The main advantage of trading using opposite GMK Norilskiy and Group Ten positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMK Norilskiy position performs unexpectedly, Group Ten 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 Group Ten will offset losses from the drop in Group Ten's long position.| GMK Norilskiy vs. Group Ten Metals | GMK Norilskiy vs. Ascendant Resources | GMK Norilskiy vs. Atico Mining | GMK Norilskiy vs. Prime Mining Corp |
| Group Ten vs. Ascendant Resources | Group Ten vs. Atico Mining | Group Ten vs. Prime Mining Corp | Group Ten vs. Wallbridge Mining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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