Correlation Between GCM Grosvenor and Siebert Financial
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Siebert Financial 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 Siebert Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Siebert Financial Corp, you can compare the effects of market volatilities on GCM Grosvenor and Siebert Financial 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 Siebert Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Siebert Financial.
Diversification Opportunities for GCM Grosvenor and Siebert Financial
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GCM and Siebert is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Siebert Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siebert Financial Corp 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 Siebert Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siebert Financial Corp has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Siebert Financial go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Siebert Financial
Assuming the 90 days horizon GCM Grosvenor is expected to generate 26.99 times more return on investment than Siebert Financial. However, GCM Grosvenor is 26.99 times more volatile than Siebert Financial Corp. It trades about 0.11 of its potential returns per unit of risk. Siebert Financial Corp is currently generating about 0.07 per unit of risk. If you would invest 44.00 in GCM Grosvenor on September 3, 2024 and sell it today you would earn a total of 96.00 from holding GCM Grosvenor or generate 218.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.75% |
| Values | Daily Returns |
GCM Grosvenor vs. Siebert Financial Corp
Performance |
| Timeline |
| GCM Grosvenor |
| Siebert Financial Corp |
GCM Grosvenor and Siebert Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and Siebert Financial
The main advantage of trading using opposite GCM Grosvenor and Siebert Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Siebert Financial 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 Siebert Financial will offset losses from the drop in Siebert Financial'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 |
| Siebert Financial vs. Riot Blockchain | Siebert Financial vs. Marathon Digital Holdings | Siebert Financial vs. Applied Blockchain | Siebert Financial vs. Hut 8 Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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