Correlation Between GCM Grosvenor and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Goldman Sachs 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 Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Goldman Sachs Group, you can compare the effects of market volatilities on GCM Grosvenor and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Goldman Sachs.
Diversification Opportunities for GCM Grosvenor and Goldman Sachs
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GCM and Goldman is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Goldman Sachs Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Group 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Group has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Goldman Sachs go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Goldman Sachs
Assuming the 90 days horizon GCM Grosvenor is expected to generate 3.52 times more return on investment than Goldman Sachs. However, GCM Grosvenor is 3.52 times more volatile than Goldman Sachs Group. It trades about 0.48 of its potential returns per unit of risk. Goldman Sachs Group is currently generating about 0.33 per unit of risk. If you would invest 126.00 in GCM Grosvenor on November 1, 2024 and sell it today you would earn a total of 86.00 from holding GCM Grosvenor or generate 68.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GCM Grosvenor vs. Goldman Sachs Group
Performance |
| Timeline |
| GCM Grosvenor |
| Goldman Sachs Group |
GCM Grosvenor and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and Goldman Sachs
The main advantage of trading using opposite GCM Grosvenor and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| GCM Grosvenor vs. Blue Owl Capital | GCM Grosvenor vs. TPG Inc | GCM Grosvenor vs. Patria Investments | GCM Grosvenor vs. Cion Investment Corp |
| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stocks Directory Find actively traded stocks across global markets |