Correlation Between GCM Grosvenor and Amex Exploration
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Amex Exploration 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 Amex Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Amex Exploration, you can compare the effects of market volatilities on GCM Grosvenor and Amex Exploration 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 Amex Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Amex Exploration.
Diversification Opportunities for GCM Grosvenor and Amex Exploration
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GCM and Amex is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Amex Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amex Exploration 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 Amex Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amex Exploration has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Amex Exploration go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Amex Exploration
Assuming the 90 days horizon GCM Grosvenor is expected to generate 22.1 times more return on investment than Amex Exploration. However, GCM Grosvenor is 22.1 times more volatile than Amex Exploration. It trades about 0.08 of its potential returns per unit of risk. Amex Exploration is currently generating about 0.0 per unit of risk. If you would invest 73.00 in GCM Grosvenor on September 4, 2024 and sell it today you would earn a total of 41.00 from holding GCM Grosvenor or generate 56.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.83% |
| Values | Daily Returns |
GCM Grosvenor vs. Amex Exploration
Performance |
| Timeline |
| GCM Grosvenor |
| Amex Exploration |
GCM Grosvenor and Amex Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and Amex Exploration
The main advantage of trading using opposite GCM Grosvenor and Amex Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Amex Exploration 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 Amex Exploration will offset losses from the drop in Amex Exploration's long position.| GCM Grosvenor vs. GCM Grosvenor | GCM Grosvenor vs. Glory Star New | GCM Grosvenor vs. Eos Energy Enterprises |
| Amex Exploration vs. Minnova Corp | Amex Exploration vs. Argo Gold | Amex Exploration vs. Advance Gold Corp | Amex Exploration vs. Blue Star Gold |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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