Correlation Between GCM Grosvenor and CBH
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and CBH 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 CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and CBH, you can compare the effects of market volatilities on GCM Grosvenor and CBH 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 CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and CBH.
Diversification Opportunities for GCM Grosvenor and CBH
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GCM and CBH is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH 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 CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and CBH go up and down completely randomly.
Pair Corralation between GCM Grosvenor and CBH
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 | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
GCM Grosvenor vs. CBH
Performance |
| Timeline |
| GCM Grosvenor |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GCM Grosvenor and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and CBH
The main advantage of trading using opposite GCM Grosvenor and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| GCM Grosvenor vs. Aurora Innovation | GCM Grosvenor vs. HUMANA INC | GCM Grosvenor vs. Aquagold International | GCM Grosvenor vs. Barloworld Ltd ADR |
| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH 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 Stocks Directory module to find actively traded stocks across global markets.
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