Correlation Between GCM Mining and Thunder Mountain
Can any of the company-specific risk be diversified away by investing in both GCM Mining and Thunder Mountain 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 Thunder Mountain 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 Thunder Mountain Gold, you can compare the effects of market volatilities on GCM Mining and Thunder Mountain 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 Thunder Mountain. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Mining and Thunder Mountain.
Diversification Opportunities for GCM Mining and Thunder Mountain
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GCM and Thunder is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding GCM Mining Corp and Thunder Mountain Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Mountain 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 Thunder Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Mountain Gold has no effect on the direction of GCM Mining i.e., GCM Mining and Thunder Mountain go up and down completely randomly.
Pair Corralation between GCM Mining and Thunder Mountain
If you would invest 5.00 in Thunder Mountain Gold on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Thunder Mountain Gold or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.3% |
| Values | Daily Returns |
GCM Mining Corp vs. Thunder Mountain Gold
Performance |
| Timeline |
| GCM Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Thunder Mountain Gold |
GCM Mining and Thunder Mountain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Mining and Thunder Mountain
The main advantage of trading using opposite GCM Mining and Thunder Mountain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Mining position performs unexpectedly, Thunder Mountain 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 Thunder Mountain will offset losses from the drop in Thunder Mountain'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 |
| Thunder Mountain vs. Gold79 Mines | Thunder Mountain vs. Arctic Star Exploration | Thunder Mountain vs. Arras Minerals Corp | Thunder Mountain 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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