Correlation Between Eos Energy and GCM Grosvenor
Can any of the company-specific risk be diversified away by investing in both Eos Energy 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 Eos Energy and GCM Grosvenor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eos Energy Enterprises and GCM Grosvenor, you can compare the effects of market volatilities on Eos Energy 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 Eos Energy with a short position of GCM Grosvenor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and GCM Grosvenor.
Diversification Opportunities for Eos Energy and GCM Grosvenor
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eos and GCM is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and GCM Grosvenor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCM Grosvenor and Eos Energy 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 Eos Energy Enterprises 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 Eos Energy i.e., Eos Energy and GCM Grosvenor go up and down completely randomly.
Pair Corralation between Eos Energy and GCM Grosvenor
Assuming the 90 days horizon Eos Energy Enterprises is expected to generate 8.43 times more return on investment than GCM Grosvenor. However, Eos Energy is 8.43 times more volatile than GCM Grosvenor. It trades about 0.1 of its potential returns per unit of risk. GCM Grosvenor is currently generating about 0.13 per unit of risk. If you would invest 11.00 in Eos Energy Enterprises on August 25, 2024 and sell it today you would earn a total of 10.00 from holding Eos Energy Enterprises or generate 90.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Eos Energy Enterprises vs. GCM Grosvenor
Performance |
| Timeline |
| Eos Energy Enterprises |
| GCM Grosvenor |
Eos Energy and GCM Grosvenor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and GCM Grosvenor
The main advantage of trading using opposite Eos Energy and GCM Grosvenor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy 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.| Eos Energy vs. Eos Energy Enterprises | Eos Energy vs. CuriosityStream | Eos Energy vs. GCM Grosvenor | Eos Energy vs. Canoo Holdings |
| GCM Grosvenor vs. MFS Investment Grade | GCM Grosvenor vs. Invesco High Income | GCM Grosvenor vs. Eaton Vance National | GCM Grosvenor vs. Nuveen California Select |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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