Correlation Between GCM Grosvenor and CEMATRIX
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and CEMATRIX 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 CEMATRIX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and CEMATRIX, you can compare the effects of market volatilities on GCM Grosvenor and CEMATRIX 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 CEMATRIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and CEMATRIX.
Diversification Opportunities for GCM Grosvenor and CEMATRIX
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GCM and CEMATRIX is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and CEMATRIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEMATRIX 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 CEMATRIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEMATRIX has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and CEMATRIX go up and down completely randomly.
Pair Corralation between GCM Grosvenor and CEMATRIX
Assuming the 90 days horizon GCM Grosvenor is expected to generate 18.06 times more return on investment than CEMATRIX. However, GCM Grosvenor is 18.06 times more volatile than CEMATRIX. It trades about 0.08 of its potential returns per unit of risk. CEMATRIX is currently generating about 0.03 per unit of risk. If you would invest 93.00 in GCM Grosvenor on November 5, 2024 and sell it today you would earn a total of 109.00 from holding GCM Grosvenor or generate 117.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.63% |
| Values | Daily Returns |
GCM Grosvenor vs. CEMATRIX
Performance |
| Timeline |
| GCM Grosvenor |
| CEMATRIX |
GCM Grosvenor and CEMATRIX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and CEMATRIX
The main advantage of trading using opposite GCM Grosvenor and CEMATRIX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, CEMATRIX 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 CEMATRIX will offset losses from the drop in CEMATRIX's long position.| GCM Grosvenor vs. Hudson Acquisition I | GCM Grosvenor vs. Marblegate Acquisition Corp | GCM Grosvenor vs. Alpha One | GCM Grosvenor vs. Manaris Corp |
| CEMATRIX vs. Tecnoglass | CEMATRIX vs. Xinyi Glass Holdings | CEMATRIX vs. Anhui Conch Cement | CEMATRIX vs. Basanite |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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