Correlation Between GCM Grosvenor and Toubani Resources
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Toubani 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 Toubani 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 Toubani Resources, you can compare the effects of market volatilities on GCM Grosvenor and Toubani 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 Toubani Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Toubani Resources.
Diversification Opportunities for GCM Grosvenor and Toubani Resources
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GCM and Toubani is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Toubani Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toubani 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 Toubani Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toubani Resources has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Toubani Resources go up and down completely randomly.
Pair Corralation between GCM Grosvenor and Toubani Resources
If you would invest 31.00 in GCM Grosvenor on March 14, 2024 and sell it today you would earn a total of 18.00 from holding GCM Grosvenor or generate 58.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 1.69% |
Values | Daily Returns |
GCM Grosvenor vs. Toubani Resources
Performance |
Timeline |
GCM Grosvenor |
Toubani Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GCM Grosvenor and Toubani Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GCM Grosvenor and Toubani Resources
The main advantage of trading using opposite GCM Grosvenor and Toubani Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Toubani 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 Toubani Resources will offset losses from the drop in Toubani Resources' long position.GCM Grosvenor vs. Scully Royalty | GCM Grosvenor vs. Mercurity Fintech Holding | GCM Grosvenor vs. Donnelley Financial Solutions | GCM Grosvenor vs. Oppenheimer Holdings |
Toubani Resources vs. Argo Gold | Toubani Resources vs. Blue Star Gold | Toubani Resources vs. Angkor Resources Corp | Toubani Resources vs. Advance Gold 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |