Correlation Between GCM Grosvenor and IHIT
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and IHIT 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 IHIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and IHIT, you can compare the effects of market volatilities on GCM Grosvenor and IHIT 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 IHIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and IHIT.
Diversification Opportunities for GCM Grosvenor and IHIT
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GCM and IHIT is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and IHIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHIT 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 IHIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHIT has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and IHIT go up and down completely randomly.
Pair Corralation between GCM Grosvenor and IHIT
If you would invest 1,171 in GCM Grosvenor on August 28, 2024 and sell it today you would earn a total of 64.00 from holding GCM Grosvenor or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
GCM Grosvenor vs. IHIT
Performance |
| Timeline |
| GCM Grosvenor |
| IHIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GCM Grosvenor and IHIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and IHIT
The main advantage of trading using opposite GCM Grosvenor and IHIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, IHIT 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 IHIT will offset losses from the drop in IHIT's long position.| GCM Grosvenor vs. Aurora Innovation | GCM Grosvenor vs. HUMANA INC | GCM Grosvenor vs. Aquagold International | GCM Grosvenor vs. Barloworld Ltd ADR |
| IHIT vs. MFS Investment Grade | IHIT vs. Invesco High Income | IHIT vs. Eaton Vance National | IHIT 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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