Correlation Between GCM Grosvenor and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Aberdeen Global 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 Aberdeen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Aberdeen Global Dynamic, you can compare the effects of market volatilities on GCM Grosvenor and Aberdeen Global 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 Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Aberdeen Global.
Diversification Opportunities for GCM Grosvenor and Aberdeen Global
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GCM and Aberdeen is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Aberdeen Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Dynamic 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 Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global Dynamic has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Aberdeen Global go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Aberdeen Global
Assuming the 90 days horizon GCM Grosvenor is expected to generate 14.41 times more return on investment than Aberdeen Global. However, GCM Grosvenor is 14.41 times more volatile than Aberdeen Global Dynamic. It trades about 0.18 of its potential returns per unit of risk. Aberdeen Global Dynamic is currently generating about -0.04 per unit of risk. If you would invest 100.00 in GCM Grosvenor on August 29, 2024 and sell it today you would earn a total of 29.00 from holding GCM Grosvenor or generate 29.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
GCM Grosvenor vs. Aberdeen Global Dynamic
Performance |
| Timeline |
| GCM Grosvenor |
| Aberdeen Global Dynamic |
GCM Grosvenor and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and Aberdeen Global
The main advantage of trading using opposite GCM Grosvenor and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Aberdeen Global 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.| GCM Grosvenor vs. Aurora Innovation | GCM Grosvenor vs. HUMANA INC | GCM Grosvenor vs. Aquagold International | GCM Grosvenor vs. Barloworld Ltd ADR |
| Aberdeen Global vs. Allianzgi Convertible Income | Aberdeen Global vs. MFS Investment Grade | Aberdeen Global vs. Eaton Vance Senior | Aberdeen Global vs. Stone Harbor Emerging |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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