Correlation Between GCM Mining and Clifton Mining
Can any of the company-specific risk be diversified away by investing in both GCM Mining and Clifton 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 GCM Mining and Clifton Mining 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 Clifton Mining Co, you can compare the effects of market volatilities on GCM Mining and Clifton 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 GCM Mining with a short position of Clifton Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Mining and Clifton Mining.
Diversification Opportunities for GCM Mining and Clifton Mining
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GCM and Clifton is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding GCM Mining Corp and Clifton Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clifton Mining 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 Clifton Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clifton Mining has no effect on the direction of GCM Mining i.e., GCM Mining and Clifton Mining go up and down completely randomly.
Pair Corralation between GCM Mining and Clifton Mining
If you would invest 5.00 in Clifton Mining Co on November 3, 2024 and sell it today you would lose (0.70) from holding Clifton Mining Co or give up 14.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.81% |
| Values | Daily Returns |
GCM Mining Corp vs. Clifton Mining Co
Performance |
| Timeline |
| GCM Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Clifton Mining |
GCM Mining and Clifton Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Mining and Clifton Mining
The main advantage of trading using opposite GCM Mining and Clifton Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Mining position performs unexpectedly, Clifton 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 Clifton Mining will offset losses from the drop in Clifton Mining's 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 |
| Clifton Mining vs. Cartier Iron Corp | Clifton Mining vs. Arctic Star Exploration | Clifton Mining vs. Capella Minerals Limited | Clifton Mining vs. Denarius Silver 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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