Correlation Between GCM Grosvenor and Robex Resources
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Robex Resources 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 Robex Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Robex Resources, you can compare the effects of market volatilities on GCM Grosvenor and Robex Resources 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 Robex Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Robex Resources.
Diversification Opportunities for GCM Grosvenor and Robex Resources
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GCM and Robex is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Robex Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robex 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 Robex Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robex Resources has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Robex Resources go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Robex Resources
Assuming the 90 days horizon GCM Grosvenor is expected to generate 4.11 times more return on investment than Robex Resources. However, GCM Grosvenor is 4.11 times more volatile than Robex Resources. It trades about 0.25 of its potential returns per unit of risk. Robex Resources is currently generating about -0.25 per unit of risk. If you would invest 95.00 in GCM Grosvenor on September 1, 2024 and sell it today you would earn a total of 45.00 from holding GCM Grosvenor or generate 47.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
GCM Grosvenor vs. Robex Resources
Performance |
| Timeline |
| GCM Grosvenor |
| Robex Resources |
GCM Grosvenor and Robex Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and Robex Resources
The main advantage of trading using opposite GCM Grosvenor and Robex Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Robex Resources 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 Robex Resources will offset losses from the drop in Robex Resources' long position.The idea behind GCM Grosvenor and Robex Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Robex Resources vs. South32 Limited | Robex Resources vs. NioCorp Developments Ltd | Robex Resources vs. HUMANA INC | Robex Resources vs. SCOR PK |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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 | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |