Correlation Between GCM Mining and Provenance Gold
Can any of the company-specific risk be diversified away by investing in both GCM Mining and Provenance 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 Provenance 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 Provenance Gold Corp, you can compare the effects of market volatilities on GCM Mining and Provenance 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 Provenance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Mining and Provenance Gold.
Diversification Opportunities for GCM Mining and Provenance Gold
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GCM and Provenance is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding GCM Mining Corp and Provenance Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Provenance Gold Corp 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 Provenance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Provenance Gold Corp has no effect on the direction of GCM Mining i.e., GCM Mining and Provenance Gold go up and down completely randomly.
Pair Corralation between GCM Mining and Provenance Gold
If you would invest 19.00 in Provenance Gold Corp on October 22, 2024 and sell it today you would earn a total of 0.00 from holding Provenance Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
GCM Mining Corp vs. Provenance Gold Corp
Performance |
| Timeline |
| GCM Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Provenance Gold Corp |
GCM Mining and Provenance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Mining and Provenance Gold
The main advantage of trading using opposite GCM Mining and Provenance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Mining position performs unexpectedly, Provenance 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 Provenance Gold will offset losses from the drop in Provenance 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 |
| Provenance Gold vs. Chesapeake Gold Corp | Provenance Gold vs. Clifton Mining Co | Provenance Gold vs. Usha Resources | Provenance Gold vs. American Copper Development |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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