Correlation Between GMV Minerals and Cameco Corp
Can any of the company-specific risk be diversified away by investing in both GMV Minerals and Cameco Corp 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 GMV Minerals and Cameco Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMV Minerals and Cameco Corp, you can compare the effects of market volatilities on GMV Minerals and Cameco Corp 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 GMV Minerals with a short position of Cameco Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMV Minerals and Cameco Corp.
Diversification Opportunities for GMV Minerals and Cameco Corp
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GMV and Cameco is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding GMV Minerals and Cameco Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cameco Corp and GMV Minerals 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 GMV Minerals are associated (or correlated) with Cameco Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cameco Corp has no effect on the direction of GMV Minerals i.e., GMV Minerals and Cameco Corp go up and down completely randomly.
Pair Corralation between GMV Minerals and Cameco Corp
Assuming the 90 days horizon GMV Minerals is expected to generate 3.77 times more return on investment than Cameco Corp. However, GMV Minerals is 3.77 times more volatile than Cameco Corp. It trades about 0.05 of its potential returns per unit of risk. Cameco Corp is currently generating about 0.07 per unit of risk. If you would invest 14.00 in GMV Minerals on January 26, 2024 and sell it today you would earn a total of 2.00 from holding GMV Minerals or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GMV Minerals vs. Cameco Corp
Performance |
| Timeline |
| GMV Minerals |
| Cameco Corp |
GMV Minerals and Cameco Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMV Minerals and Cameco Corp
The main advantage of trading using opposite GMV Minerals and Cameco Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMV Minerals position performs unexpectedly, Cameco Corp 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 Cameco Corp will offset losses from the drop in Cameco Corp's long position.| GMV Minerals vs. Altamira Gold Corp | GMV Minerals vs. Tarku Resources | GMV Minerals vs. Finlay Minerals | GMV Minerals vs. Adamera Minerals Corp |
| Cameco Corp vs. ALX Uranium Corp | Cameco Corp vs. Forum Energy Metals | Cameco Corp vs. K2 Gold | Cameco Corp vs. Blue Sky Uranium |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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