Correlation Between AerSale Corp and GCM Grosvenor
Can any of the company-specific risk be diversified away by investing in both AerSale Corp and GCM Grosvenor 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 AerSale Corp and GCM Grosvenor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and GCM Grosvenor, you can compare the effects of market volatilities on AerSale Corp and GCM Grosvenor 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 AerSale Corp with a short position of GCM Grosvenor. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and GCM Grosvenor.
Diversification Opportunities for AerSale Corp and GCM Grosvenor
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AerSale and GCM is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and GCM Grosvenor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCM Grosvenor and AerSale Corp 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 AerSale Corp are associated (or correlated) with GCM Grosvenor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCM Grosvenor has no effect on the direction of AerSale Corp i.e., AerSale Corp and GCM Grosvenor go up and down completely randomly.
Pair Corralation between AerSale Corp and GCM Grosvenor
Given the investment horizon of 90 days AerSale Corp is expected to under-perform the GCM Grosvenor. In addition to that, AerSale Corp is 2.52 times more volatile than GCM Grosvenor. It trades about -0.05 of its total potential returns per unit of risk. GCM Grosvenor is currently generating about 0.13 per unit of volatility. If you would invest 662.00 in GCM Grosvenor on August 31, 2024 and sell it today you would earn a total of 579.00 from holding GCM Grosvenor or generate 87.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerSale Corp vs. GCM Grosvenor
Performance |
| Timeline |
| AerSale Corp |
| GCM Grosvenor |
AerSale Corp and GCM Grosvenor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and GCM Grosvenor
The main advantage of trading using opposite AerSale Corp and GCM Grosvenor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp position performs unexpectedly, GCM Grosvenor 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 GCM Grosvenor will offset losses from the drop in GCM Grosvenor's long position.| AerSale Corp vs. Grupo Aeroportuario del | AerSale Corp vs. Grupo Aeroportuario del | AerSale Corp vs. Corporacion America Airports | AerSale Corp vs. Aquagold International |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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