Correlation Between GCM Grosvenor and Atlas Corp
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Atlas Corp 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 Atlas Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Atlas Corp, you can compare the effects of market volatilities on GCM Grosvenor and Atlas Corp 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 Atlas Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Atlas Corp.
Diversification Opportunities for GCM Grosvenor and Atlas Corp
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between GCM and Atlas is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Atlas Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas 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 Atlas Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Corp has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Atlas Corp go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Atlas Corp
Assuming the 90 days horizon GCM Grosvenor is expected to generate 18.91 times more return on investment than Atlas Corp. However, GCM Grosvenor is 18.91 times more volatile than Atlas Corp. It trades about 0.24 of its potential returns per unit of risk. Atlas Corp is currently generating about 0.28 per unit of risk. If you would invest 41.00 in GCM Grosvenor on February 28, 2024 and sell it today you would earn a total of 14.75 from holding GCM Grosvenor or generate 35.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
GCM Grosvenor vs. Atlas Corp
Performance |
Timeline |
GCM Grosvenor |
Atlas Corp |
GCM Grosvenor and Atlas Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GCM Grosvenor and Atlas Corp
The main advantage of trading using opposite GCM Grosvenor and Atlas Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Atlas Corp 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 Atlas Corp will offset losses from the drop in Atlas Corp's long position.GCM Grosvenor vs. Visa Class A | GCM Grosvenor vs. Distoken Acquisition | GCM Grosvenor vs. AllianceBernstein Holding LP | GCM Grosvenor vs. Associated Capital Group |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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