Correlation Between Aberdeen Australia and GCM Grosvenor
Can any of the company-specific risk be diversified away by investing in both Aberdeen Australia and GCM Grosvenor 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 Aberdeen Australia and GCM Grosvenor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Australia Ef and GCM Grosvenor, you can compare the effects of market volatilities on Aberdeen Australia and GCM Grosvenor 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 Aberdeen Australia with a short position of GCM Grosvenor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Australia and GCM Grosvenor.
Diversification Opportunities for Aberdeen Australia and GCM Grosvenor
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aberdeen and GCM is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Australia Ef and GCM Grosvenor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCM Grosvenor and Aberdeen Australia 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 Aberdeen Australia Ef are associated (or correlated) with GCM Grosvenor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCM Grosvenor has no effect on the direction of Aberdeen Australia i.e., Aberdeen Australia and GCM Grosvenor go up and down completely randomly.
Pair Corralation between Aberdeen Australia and GCM Grosvenor
Considering the 90-day investment horizon Aberdeen Australia is expected to generate 2.42 times less return on investment than GCM Grosvenor. But when comparing it to its historical volatility, Aberdeen Australia Ef is 2.0 times less risky than GCM Grosvenor. It trades about 0.11 of its potential returns per unit of risk. GCM Grosvenor is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,171 in GCM Grosvenor on August 28, 2024 and sell it today you would earn a total of 64.00 from holding GCM Grosvenor or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Australia Ef vs. GCM Grosvenor
Performance |
| Timeline |
| Aberdeen Australia |
| GCM Grosvenor |
Aberdeen Australia and GCM Grosvenor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Australia and GCM Grosvenor
The main advantage of trading using opposite Aberdeen Australia and GCM Grosvenor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Australia position performs unexpectedly, GCM Grosvenor 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 GCM Grosvenor will offset losses from the drop in GCM Grosvenor's long position.| Aberdeen Australia vs. Aberdeen Asia Pacific If | Aberdeen Australia vs. Aberdeen Japan Equity | Aberdeen Australia vs. Stone Harbor Emerging | Aberdeen Australia vs. Tortoise Pipeline And |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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