Correlation Between Nuveen Arizona and GCM Grosvenor
Can any of the company-specific risk be diversified away by investing in both Nuveen Arizona 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 Nuveen Arizona and GCM Grosvenor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Arizona Quality and GCM Grosvenor, you can compare the effects of market volatilities on Nuveen Arizona 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 Nuveen Arizona with a short position of GCM Grosvenor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Arizona and GCM Grosvenor.
Diversification Opportunities for Nuveen Arizona and GCM Grosvenor
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and GCM is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Arizona Quality and GCM Grosvenor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCM Grosvenor and Nuveen Arizona 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 Nuveen Arizona Quality 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 Nuveen Arizona i.e., Nuveen Arizona and GCM Grosvenor go up and down completely randomly.
Pair Corralation between Nuveen Arizona and GCM Grosvenor
Considering the 90-day investment horizon Nuveen Arizona is expected to generate 6.54 times less return on investment than GCM Grosvenor. But when comparing it to its historical volatility, Nuveen Arizona Quality is 8.07 times less risky than GCM Grosvenor. It trades about 0.22 of its potential returns per unit of risk. GCM Grosvenor is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 100.00 in GCM Grosvenor on August 29, 2024 and sell it today you would earn a total of 29.00 from holding GCM Grosvenor or generate 29.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nuveen Arizona Quality vs. GCM Grosvenor
Performance |
| Timeline |
| Nuveen Arizona Quality |
| GCM Grosvenor |
Nuveen Arizona and GCM Grosvenor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Arizona and GCM Grosvenor
The main advantage of trading using opposite Nuveen Arizona and GCM Grosvenor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Arizona 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.| Nuveen Arizona vs. BBX Capital | Nuveen Arizona vs. Westwood Holdings Group | Nuveen Arizona vs. Mfs Intermediate High | Nuveen Arizona vs. Brightsphere Investment Group |
| GCM Grosvenor vs. Aurora Innovation | GCM Grosvenor vs. HUMANA INC | GCM Grosvenor vs. Aquagold International | GCM Grosvenor vs. Barloworld Ltd ADR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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