Correlation Between GCM Grosvenor and Bowen Acquisition
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Bowen Acquisition 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 GCM Grosvenor and Bowen Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Bowen Acquisition Corp, you can compare the effects of market volatilities on GCM Grosvenor and Bowen Acquisition 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 GCM Grosvenor with a short position of Bowen Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Bowen Acquisition.
Diversification Opportunities for GCM Grosvenor and Bowen Acquisition
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GCM and Bowen is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Bowen Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowen Acquisition Corp and GCM Grosvenor 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 GCM Grosvenor are associated (or correlated) with Bowen Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowen Acquisition Corp has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Bowen Acquisition go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Bowen Acquisition
Given the investment horizon of 90 days GCM Grosvenor is expected to generate 0.07 times more return on investment than Bowen Acquisition. However, GCM Grosvenor is 13.52 times less risky than Bowen Acquisition. It trades about 0.44 of its potential returns per unit of risk. Bowen Acquisition Corp is currently generating about -0.33 per unit of risk. If you would invest 1,256 in GCM Grosvenor on November 6, 2024 and sell it today you would earn a total of 86.00 from holding GCM Grosvenor or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GCM Grosvenor vs. Bowen Acquisition Corp
Performance |
| Timeline |
| GCM Grosvenor |
| Bowen Acquisition Corp |
GCM Grosvenor and Bowen Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and Bowen Acquisition
The main advantage of trading using opposite GCM Grosvenor and Bowen Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Bowen Acquisition 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 Bowen Acquisition will offset losses from the drop in Bowen Acquisition's long position.| GCM Grosvenor vs. MFS Investment Grade | GCM Grosvenor vs. Eaton Vance National | GCM Grosvenor vs. Nuveen California Select | GCM Grosvenor vs. Federated Premier Municipal |
| Bowen Acquisition vs. Hudson Acquisition I | Bowen Acquisition vs. Marblegate Acquisition Corp | Bowen Acquisition vs. Alpha One | Bowen Acquisition vs. Manaris Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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