Correlation Between Grosvenor Resource and Capstone Mining

Can any of the company-specific risk be diversified away by investing in both Grosvenor Resource and Capstone 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 Grosvenor Resource and Capstone Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Grosvenor Resource and Capstone Mining

0.0

Correlation Coefficient

Grosvenor Resource  Capstone Mining

Pay attention - limited upside

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

Pair Corralation between Grosvenor Resource and Capstone Mining

If you would invest  859.00  in Capstone Mining Corp on September 2, 2024 and sell it today you would earn a total of  109.00  from holding Capstone Mining Corp or generate 12.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Grosvenor Resource Corp  vs.  Capstone Mining Corp

Grosvenor Resource Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grosvenor Resource Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Grosvenor Resource is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Capstone Mining Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Capstone Mining Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Capstone Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Grosvenor Resource and Capstone Mining

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

The idea behind Grosvenor Resource Corp and Capstone Mining Corp 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..