Correlation Between GCM Mining and Alien Metals
Can any of the company-specific risk be diversified away by investing in both GCM Mining and Alien Metals 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 GCM Mining and Alien Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Mining Corp and Alien Metals, you can compare the effects of market volatilities on GCM Mining and Alien Metals 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 GCM Mining with a short position of Alien Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Mining and Alien Metals.
Diversification Opportunities for GCM Mining and Alien Metals
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GCM and Alien is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding GCM Mining Corp and Alien Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alien Metals and GCM Mining 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 GCM Mining Corp are associated (or correlated) with Alien Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alien Metals has no effect on the direction of GCM Mining i.e., GCM Mining and Alien Metals go up and down completely randomly.
Pair Corralation between GCM Mining and Alien Metals
If you would invest 0.05 in Alien Metals on November 3, 2024 and sell it today you would earn a total of 0.04 from holding Alien Metals or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
GCM Mining Corp vs. Alien Metals
Performance |
| Timeline |
| GCM Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alien Metals |
GCM Mining and Alien Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Mining and Alien Metals
The main advantage of trading using opposite GCM Mining and Alien Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Mining position performs unexpectedly, Alien Metals 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 Alien Metals will offset losses from the drop in Alien Metals' long position.| GCM Mining vs. Silver Tiger Metals | GCM Mining vs. Defiance Silver Corp | GCM Mining vs. Summa Silver Corp | GCM Mining vs. AbraSilver Resource Corp |
| Alien Metals vs. Cartier Iron Corp | Alien Metals vs. Arctic Star Exploration | Alien Metals vs. Denarius Silver Corp | Alien Metals vs. Pacific Ridge Exploration |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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