Correlation Between GCM Grosvenor and Nuveen Core
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Nuveen Core 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 Nuveen Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Nuveen Core Plus, you can compare the effects of market volatilities on GCM Grosvenor and Nuveen Core 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 Nuveen Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Nuveen Core.
Diversification Opportunities for GCM Grosvenor and Nuveen Core
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GCM and Nuveen is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Nuveen Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Core Plus 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 Nuveen Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Core Plus has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Nuveen Core go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Nuveen Core
Given the investment horizon of 90 days GCM Grosvenor is expected to generate 1.27 times more return on investment than Nuveen Core. However, GCM Grosvenor is 1.27 times more volatile than Nuveen Core Plus. It trades about 0.43 of its potential returns per unit of risk. Nuveen Core Plus is currently generating about 0.4 per unit of risk. If you would invest 1,286 in GCM Grosvenor on November 9, 2024 and sell it today you would earn a total of 84.00 from holding GCM Grosvenor or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GCM Grosvenor vs. Nuveen Core Plus
Performance |
| Timeline |
| GCM Grosvenor |
| Nuveen Core Plus |
GCM Grosvenor and Nuveen Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and Nuveen Core
The main advantage of trading using opposite GCM Grosvenor and Nuveen Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Nuveen Core 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 Nuveen Core will offset losses from the drop in Nuveen Core'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 |
| Nuveen Core vs. Us Global Nanospace | Nuveen Core vs. Safeplus International Holdings | Nuveen Core vs. Nanobac Pharmaceuticals Incorporated | Nuveen Core vs. MidCap Financial Investment |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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