Correlation Between GCM Grosvenor and Data Knights
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Data Knights 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 Data Knights into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Data Knights Acquisition, you can compare the effects of market volatilities on GCM Grosvenor and Data Knights 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 Data Knights. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Data Knights.
Diversification Opportunities for GCM Grosvenor and Data Knights
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GCM and Data is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Data Knights Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Knights Acquisition 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 Data Knights. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Knights Acquisition has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Data Knights go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Data Knights
If you would invest 100.00 in GCM Grosvenor on August 30, 2024 and sell it today you would earn a total of 26.00 from holding GCM Grosvenor or generate 26.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
GCM Grosvenor vs. Data Knights Acquisition
Performance |
| Timeline |
| GCM Grosvenor |
| Data Knights Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GCM Grosvenor and Data Knights Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and Data Knights
The main advantage of trading using opposite GCM Grosvenor and Data Knights positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Data Knights 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 Data Knights will offset losses from the drop in Data Knights' long position.| GCM Grosvenor vs. ClimateRock Class A | GCM Grosvenor vs. Oak Woods Acquisition | GCM Grosvenor vs. CF Acquisition VII | GCM Grosvenor vs. DP Cap Acquisition |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |