Correlation Between GCM Mining and Caldas Gold
Can any of the company-specific risk be diversified away by investing in both GCM Mining and Caldas Gold 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 Caldas Gold 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 Caldas Gold, you can compare the effects of market volatilities on GCM Mining and Caldas Gold 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 Caldas Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Mining and Caldas Gold.
Diversification Opportunities for GCM Mining and Caldas Gold
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between GCM and Caldas is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding GCM Mining Corp and Caldas Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caldas Gold 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 Caldas Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caldas Gold has no effect on the direction of GCM Mining i.e., GCM Mining and Caldas Gold go up and down completely randomly.
Pair Corralation between GCM Mining and Caldas Gold
If you would invest 0.00 in Caldas Gold on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Caldas Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GCM Mining Corp vs. Caldas Gold
Performance |
| Timeline |
| GCM Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Caldas Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GCM Mining and Caldas Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Mining and Caldas Gold
The main advantage of trading using opposite GCM Mining and Caldas Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Mining position performs unexpectedly, Caldas Gold 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 Caldas Gold will offset losses from the drop in Caldas Gold'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 |
| Caldas Gold vs. Hurco Companies | Caldas Gold vs. ioneer Ltd American | Caldas Gold vs. ChampionX | Caldas Gold vs. Denison Mines 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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