Correlation Between Black Rock and Gindalbie Metals

Can any of the company-specific risk be diversified away by investing in both Black Rock and Gindalbie Metals 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 Black Rock and Gindalbie Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Black Rock Mining and Gindalbie Metals, you can compare the effects of market volatilities on Black Rock and Gindalbie Metals 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 Black Rock with a short position of Gindalbie Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Rock and Gindalbie Metals.

Diversification Opportunities for Black Rock and Gindalbie Metals

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Correlation Coefficient

Black Rock  Gindalbie Metals

Pay attention - limited upside

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

Pair Corralation between Black Rock and Gindalbie Metals

If you would invest (100.00) in Gindalbie Metals on September 26, 2024 and sell it today you would earn a total of  100.00  from holding Gindalbie Metals or generate -100.0% return on investment over 90 days.

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

Black Rock Mining  vs.  Gindalbie Metals

Black Rock Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Black Rock Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Gindalbie Metals

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Black Rock and Gindalbie Metals

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

The idea behind Black Rock Mining and Gindalbie Metals 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.