Correlation Between GT Capital and Semirara Mining

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

By analyzing existing cross correlation between GT Capital Holdings and Semirara Mining Corp, you can compare the effects of market volatilities on GT Capital and Semirara Mining 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 GT Capital with a short position of Semirara Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GT Capital and Semirara Mining.

Diversification Opportunities for GT Capital and Semirara Mining

-0.85

Correlation Coefficient

GT Capital  Semirara Mining

Pay attention - limited upside

The 3 months correlation between GTCAP and Semirara is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding GT Capital Holdings and Semirara Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semirara Mining Corp and GT 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 GT Capital Holdings are associated (or correlated) with Semirara Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semirara Mining Corp has no effect on the direction of GT Capital i.e., GT Capital and Semirara Mining go up and down completely randomly.

Pair Corralation between GT Capital and Semirara Mining

Assuming the 90 days trading horizon GT Capital Holdings is expected to under-perform the Semirara Mining. In addition to that, GT Capital is 1.84 times more volatile than Semirara Mining Corp. It trades about -0.17 of its total potential returns per unit of risk. Semirara Mining Corp is currently generating about 0.25 per unit of volatility. If you would invest  3,210  in Semirara Mining Corp on November 29, 2024 and sell it today you would earn a total of  570.00  from holding Semirara Mining Corp or generate 17.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

GT Capital Holdings  vs.  Semirara Mining Corp

GT Capital Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days GT Capital Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Semirara Mining Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Semirara Mining Corp are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Semirara Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GT Capital and Semirara Mining

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

The idea behind GT Capital Holdings and Semirara Mining Corp 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.