Correlation Between GCM Grosvenor and Alta Global
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Alta Global 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 Alta Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Alta Global Group, you can compare the effects of market volatilities on GCM Grosvenor and Alta Global 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 Alta Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Alta Global.
Diversification Opportunities for GCM Grosvenor and Alta Global
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GCM and Alta is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Alta Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta Global 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 Alta Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta Global Group has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Alta Global go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Alta Global
Assuming the 90 days horizon GCM Grosvenor is expected to generate 1.69 times more return on investment than Alta Global. However, GCM Grosvenor is 1.69 times more volatile than Alta Global Group. It trades about 0.15 of its potential returns per unit of risk. Alta Global Group is currently generating about -0.18 per unit of risk. If you would invest 100.00 in GCM Grosvenor on August 28, 2024 and sell it today you would earn a total of 21.00 from holding GCM Grosvenor or generate 21.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
GCM Grosvenor vs. Alta Global Group
Performance |
| Timeline |
| GCM Grosvenor |
| Alta Global Group |
GCM Grosvenor and Alta Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and Alta Global
The main advantage of trading using opposite GCM Grosvenor and Alta Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Alta Global 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 Alta Global will offset losses from the drop in Alta Global's long position.| GCM Grosvenor vs. PowerUp Acquisition Corp | GCM Grosvenor vs. Aurora Innovation | GCM Grosvenor vs. HUMANA INC | GCM Grosvenor vs. Aquagold International |
| Alta Global vs. Volaris | Alta Global vs. Aegean Airlines SA | Alta Global vs. American Airlines Group | Alta Global vs. Asure Software |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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