Correlation Between GCM Mining and Silver Tiger
Can any of the company-specific risk be diversified away by investing in both GCM Mining and Silver Tiger 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 Silver Tiger 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 Silver Tiger Metals, you can compare the effects of market volatilities on GCM Mining and Silver Tiger 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 Silver Tiger. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Mining and Silver Tiger.
Diversification Opportunities for GCM Mining and Silver Tiger
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GCM and Silver is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding GCM Mining Corp and Silver Tiger Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Tiger 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 Silver Tiger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Tiger Metals has no effect on the direction of GCM Mining i.e., GCM Mining and Silver Tiger go up and down completely randomly.
Pair Corralation between GCM Mining and Silver Tiger
If you would invest 17.00 in Silver Tiger Metals on September 13, 2024 and sell it today you would earn a total of 1.00 from holding Silver Tiger Metals or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
GCM Mining Corp vs. Silver Tiger Metals
Performance |
| Timeline |
| GCM Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Silver Tiger Metals |
GCM Mining and Silver Tiger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Mining and Silver Tiger
The main advantage of trading using opposite GCM Mining and Silver Tiger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Mining position performs unexpectedly, Silver Tiger 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 Silver Tiger will offset losses from the drop in Silver Tiger'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 |
| Silver Tiger vs. Gold79 Mines | Silver Tiger vs. Arctic Star Exploration | Silver Tiger vs. Arras Minerals Corp | Silver Tiger vs. American Creek Resources |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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