Correlation Between Gncc Capital and Big Ridge

Can any of the company-specific risk be diversified away by investing in both Gncc Capital and Big Ridge 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 Gncc Capital and Big Ridge into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gncc Capital and Big Ridge Gold, you can compare the effects of market volatilities on Gncc Capital and Big Ridge 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 Gncc Capital with a short position of Big Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gncc Capital and Big Ridge.

Diversification Opportunities for Gncc Capital and Big Ridge

0.0

Correlation Coefficient

Gncc Capital  Big Ridge

Pay attention - limited upside

The 3 months correlation between Gncc and Big is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gncc Capital and Big Ridge Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Ridge Gold and Gncc Capital 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 Gncc Capital are associated (or correlated) with Big Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Ridge Gold has no effect on the direction of Gncc Capital i.e., Gncc Capital and Big Ridge go up and down completely randomly.

Pair Corralation between Gncc Capital and Big Ridge

If you would invest  6.00  in Big Ridge Gold on December 27, 2024 and sell it today you would lose (1.00) from holding Big Ridge Gold or give up 16.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gncc Capital  vs.  Big Ridge Gold

Gncc Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gncc Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Gncc Capital is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Big Ridge Gold

Risk-Adjusted Performance

Very Weak

Over the last 90 days Big Ridge Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Big Ridge is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Gncc Capital and Big Ridge

The main advantage of trading using opposite Gncc Capital and Big Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gncc Capital position performs unexpectedly, Big Ridge 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 Big Ridge will offset losses from the drop in Big Ridge's long position.

The idea behind Gncc Capital and Big Ridge Gold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.