Correlation Between GCM Mining and Eastern Platinum
Can any of the company-specific risk be diversified away by investing in both GCM Mining and Eastern Platinum 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 Eastern Platinum 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 Eastern Platinum Limited, you can compare the effects of market volatilities on GCM Mining and Eastern Platinum 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 Eastern Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Mining and Eastern Platinum.
Diversification Opportunities for GCM Mining and Eastern Platinum
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GCM and Eastern is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding GCM Mining Corp and Eastern Platinum Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Platinum 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 Eastern Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Platinum has no effect on the direction of GCM Mining i.e., GCM Mining and Eastern Platinum go up and down completely randomly.
Pair Corralation between GCM Mining and Eastern Platinum
If you would invest 259.00 in GCM Mining Corp on October 25, 2024 and sell it today you would earn a total of 0.00 from holding GCM Mining Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 1.67% |
Values | Daily Returns |
GCM Mining Corp vs. Eastern Platinum Limited
Performance |
Timeline |
GCM Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eastern Platinum |
GCM Mining and Eastern Platinum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GCM Mining and Eastern Platinum
The main advantage of trading using opposite GCM Mining and Eastern Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Mining position performs unexpectedly, Eastern Platinum 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 Eastern Platinum will offset losses from the drop in Eastern Platinum'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 |
Eastern Platinum vs. Thunder Mountain Gold | Eastern Platinum vs. Chesapeake Gold Corp | Eastern Platinum vs. AbraSilver Resource Corp | Eastern Platinum vs. GoGold 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |