Correlation Between GCM Mining and McEwen Mining

Can any of the company-specific risk be diversified away by investing in both GCM Mining and McEwen 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 GCM Mining and McEwen Mining 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 McEwen Mining, you can compare the effects of market volatilities on GCM Mining and McEwen 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 GCM Mining with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Mining and McEwen Mining.

Diversification Opportunities for GCM Mining and McEwen Mining

0.0

Correlation Coefficient

GCM Mining  McEwen Mining

Pay attention - limited upside

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

Pair Corralation between GCM Mining and McEwen Mining

If you would invest  795.00  in McEwen Mining on October 23, 2024 and sell it today you would earn a total of  44.00  from holding McEwen Mining or generate 5.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

GCM Mining Corp  vs.  McEwen Mining

GCM Mining Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

McEwen Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days McEwen Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with GCM Mining and McEwen Mining

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

The idea behind GCM Mining Corp and McEwen Mining 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.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.