Correlation Between GMV Minerals and Minaurum Gold

Can any of the company-specific risk be diversified away by investing in both GMV Minerals and Minaurum Gold 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 Minaurum Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GMV Minerals and Minaurum Gold, you can compare the effects of market volatilities on GMV Minerals and Minaurum Gold 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 Minaurum Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMV Minerals and Minaurum Gold.

Diversification Opportunities for GMV Minerals and Minaurum Gold

0.8

Correlation Coefficient

GMV Minerals  Minaurum Gold

Very poor diversification

The 3 months correlation between GMV and Minaurum is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding GMV Minerals and Minaurum Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minaurum Gold 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 Minaurum Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minaurum Gold has no effect on the direction of GMV Minerals i.e., GMV Minerals and Minaurum Gold go up and down completely randomly.

Pair Corralation between GMV Minerals and Minaurum Gold

Assuming the 90 days horizon GMV Minerals is expected to generate 1.37 times more return on investment than Minaurum Gold. However, GMV Minerals is 1.37 times more volatile than Minaurum Gold. It trades about 0.13 of its potential returns per unit of risk. Minaurum Gold is currently generating about 0.14 per unit of risk. If you would invest  13.00  in GMV Minerals on May 7, 2025 and sell it today you would earn a total of  7.00  from holding GMV Minerals or generate 53.85% return on investment over 90 days.

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

GMV Minerals  vs.  Minaurum Gold

GMV Minerals

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in GMV Minerals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, GMV Minerals showed solid returns over the last few months and may actually be approaching a breakup point.

Minaurum Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Minaurum Gold are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Minaurum Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GMV Minerals and Minaurum Gold

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

The idea behind GMV Minerals and Minaurum Gold 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.