Correlation Between Blackrock Municipal and GCM Grosvenor
Can any of the company-specific risk be diversified away by investing in both Blackrock Municipal 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 Blackrock Municipal and GCM Grosvenor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Municipal Target and GCM Grosvenor, you can compare the effects of market volatilities on Blackrock Municipal 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 Blackrock Municipal with a short position of GCM Grosvenor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Municipal and GCM Grosvenor.
Diversification Opportunities for Blackrock Municipal and GCM Grosvenor
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackrock and GCM is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Municipal Target and GCM Grosvenor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCM Grosvenor and Blackrock Municipal 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 Blackrock Municipal Target 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 Blackrock Municipal i.e., Blackrock Municipal and GCM Grosvenor go up and down completely randomly.
Pair Corralation between Blackrock Municipal and GCM Grosvenor
Considering the 90-day investment horizon Blackrock Municipal is expected to generate 94.28 times less return on investment than GCM Grosvenor. But when comparing it to its historical volatility, Blackrock Municipal Target is 17.84 times less risky than GCM Grosvenor. It trades about 0.01 of its potential returns per unit of risk. GCM Grosvenor is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 56.00 in GCM Grosvenor on January 10, 2025 and sell it today you would earn a total of 35.00 from holding GCM Grosvenor or generate 62.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 84.21% |
| Values | Daily Returns |
Blackrock Municipal Target vs. GCM Grosvenor
Performance |
| Timeline |
| Blackrock Municipal |
| GCM Grosvenor |
Blackrock Municipal and GCM Grosvenor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Municipal and GCM Grosvenor
The main advantage of trading using opposite Blackrock Municipal and GCM Grosvenor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Municipal 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.| Blackrock Municipal vs. Nuveen Municipalome | Blackrock Municipal vs. Platinum Asia Investments | Blackrock Municipal vs. Eaton Vance New | Blackrock Municipal vs. Nuveen New York |
| GCM Grosvenor vs. Manaris Corp | GCM Grosvenor vs. Aquagold International | GCM Grosvenor vs. Morningstar Unconstrained Allocation | GCM Grosvenor vs. Thrivent High Yield |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |