Correlation Between GCM Grosvenor and Vinci Partners
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Vinci Partners 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 Vinci Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Vinci Partners Investments, you can compare the effects of market volatilities on GCM Grosvenor and Vinci Partners 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 Vinci Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Vinci Partners.
Diversification Opportunities for GCM Grosvenor and Vinci Partners
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GCM and Vinci is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Vinci Partners Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci Partners Inves 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 Vinci Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci Partners Inves has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Vinci Partners go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Vinci Partners
Given the investment horizon of 90 days GCM Grosvenor is expected to generate 0.67 times more return on investment than Vinci Partners. However, GCM Grosvenor is 1.5 times less risky than Vinci Partners. It trades about 0.07 of its potential returns per unit of risk. Vinci Partners Investments is currently generating about 0.02 per unit of risk. If you would invest 850.00 in GCM Grosvenor on October 25, 2024 and sell it today you would earn a total of 497.00 from holding GCM Grosvenor or generate 58.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GCM Grosvenor vs. Vinci Partners Investments
Performance |
| Timeline |
| GCM Grosvenor |
| Vinci Partners Inves |
GCM Grosvenor and Vinci Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and Vinci Partners
The main advantage of trading using opposite GCM Grosvenor and Vinci Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Vinci Partners 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 Vinci Partners will offset losses from the drop in Vinci Partners' long position.| GCM Grosvenor vs. KKR Co LP | GCM Grosvenor vs. Carlyle Group | GCM Grosvenor vs. Blackstone Group | GCM Grosvenor vs. Blue Owl Capital |
| Vinci Partners vs. Blue Owl Capital | Vinci Partners vs. P10 Inc | Vinci Partners vs. Diamond Hill Investment | Vinci Partners vs. Cion Investment 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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