Correlation Between GCM Grosvenor and Joshua Gold
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Joshua Gold 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 Joshua Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Joshua Gold Resources, you can compare the effects of market volatilities on GCM Grosvenor and Joshua Gold 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 Joshua Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Joshua Gold.
Diversification Opportunities for GCM Grosvenor and Joshua Gold
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GCM and Joshua is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Joshua Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joshua Gold Resources 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 Joshua Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joshua Gold Resources has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Joshua Gold go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Joshua Gold
Assuming the 90 days horizon GCM Grosvenor is expected to generate 7.04 times more return on investment than Joshua Gold. However, GCM Grosvenor is 7.04 times more volatile than Joshua Gold Resources. It trades about 0.08 of its potential returns per unit of risk. Joshua Gold Resources is currently generating about 0.04 per unit of risk. If you would invest 68.00 in GCM Grosvenor on September 3, 2024 and sell it today you would earn a total of 46.00 from holding GCM Grosvenor or generate 67.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.93% |
| Values | Daily Returns |
GCM Grosvenor vs. Joshua Gold Resources
Performance |
| Timeline |
| GCM Grosvenor |
| Joshua Gold Resources |
GCM Grosvenor and Joshua Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and Joshua Gold
The main advantage of trading using opposite GCM Grosvenor and Joshua Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Joshua Gold 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 Joshua Gold will offset losses from the drop in Joshua Gold's long position.| GCM Grosvenor vs. Federated Premier Municipal | GCM Grosvenor vs. Blackrock Muniyield | GCM Grosvenor vs. Federated Investors B | GCM Grosvenor vs. SEI Investments |
| Joshua Gold vs. Advantage Solutions | Joshua Gold vs. Atlas Corp | Joshua Gold vs. PureCycle Technologies | Joshua Gold vs. WM Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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