Correlation Between GCM Mining and Libero Copper
Can any of the company-specific risk be diversified away by investing in both GCM Mining and Libero Copper 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 Libero Copper 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 Libero Copper Gold, you can compare the effects of market volatilities on GCM Mining and Libero Copper 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 Libero Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Mining and Libero Copper.
Diversification Opportunities for GCM Mining and Libero Copper
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GCM and Libero is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding GCM Mining Corp and Libero Copper Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libero Copper 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 Libero Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libero Copper Gold has no effect on the direction of GCM Mining i.e., GCM Mining and Libero Copper go up and down completely randomly.
Pair Corralation between GCM Mining and Libero Copper
If you would invest 25.00 in Libero Copper Gold on September 12, 2024 and sell it today you would lose (1.00) from holding Libero Copper Gold or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
GCM Mining Corp vs. Libero Copper Gold
Performance |
| Timeline |
| GCM Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Libero Copper Gold |
GCM Mining and Libero Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Mining and Libero Copper
The main advantage of trading using opposite GCM Mining and Libero Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Mining position performs unexpectedly, Libero Copper 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 Libero Copper will offset losses from the drop in Libero Copper'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 |
| Libero Copper vs. Advantage Solutions | Libero Copper vs. Atlas Corp | Libero Copper vs. PureCycle Technologies | Libero Copper vs. WM Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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