Correlation Between Summa Silver and GCM Mining
Can any of the company-specific risk be diversified away by investing in both Summa Silver 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 Summa Silver and GCM Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summa Silver Corp and GCM Mining Corp, you can compare the effects of market volatilities on Summa Silver 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 Summa Silver with a short position of GCM Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summa Silver and GCM Mining.
Diversification Opportunities for Summa Silver and GCM Mining
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Summa and GCM is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Summa Silver Corp 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 Summa Silver 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 Summa Silver Corp 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 Summa Silver i.e., Summa Silver and GCM Mining go up and down completely randomly.
Pair Corralation between Summa Silver and GCM Mining
Assuming the 90 days horizon Summa Silver Corp is expected to under-perform the GCM Mining. In addition to that, Summa Silver is 1.5 times more volatile than GCM Mining Corp. It trades about -0.02 of its total potential returns per unit of risk. GCM Mining Corp is currently generating about 0.02 per unit of volatility. If you would invest 256.00 in GCM Mining Corp on September 13, 2024 and sell it today you would earn a total of 3.00 from holding GCM Mining Corp or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 29.15% |
| Values | Daily Returns |
Summa Silver Corp vs. GCM Mining Corp
Performance |
| Timeline |
| Summa Silver Corp |
| GCM Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Summa Silver and GCM Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summa Silver and GCM Mining
The main advantage of trading using opposite Summa Silver and GCM Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summa Silver 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.| Summa Silver vs. P2 Gold | Summa Silver vs. Enduro Metals | Summa Silver vs. Kodiak Copper Corp | Summa Silver vs. Mirasol Resources |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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