Correlation Between GCM Mining and Usha Resources

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

Diversification Opportunities for GCM Mining and Usha Resources

0.0

Correlation Coefficient

GCM Mining  Usha Resources

Pay attention - limited upside

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

Pair Corralation between GCM Mining and Usha Resources

If you would invest  3.08  in Usha Resources on December 19, 2024 and sell it today you would earn a total of  0.08  from holding Usha Resources or generate 2.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

GCM Mining Corp  vs.  Usha Resources

GCM Mining Corp

Risk-Adjusted Performance

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.

Usha Resources

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Usha Resources are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Usha Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GCM Mining and Usha Resources

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

The idea behind GCM Mining Corp and Usha Resources 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.