Correlation Between GCM Grosvenor and Kubient

Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Kubient 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 Kubient into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GCM Grosvenor and Kubient, you can compare the effects of market volatilities on GCM Grosvenor and Kubient 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 Kubient. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Kubient.

Diversification Opportunities for GCM Grosvenor and Kubient

-0.53

Correlation Coefficient

GCM Grosvenor  Kubient

Excellent diversification

The 3 months correlation between GCM and Kubient is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Kubient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kubient 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 Kubient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kubient has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Kubient go up and down completely randomly.

Pair Corralation between GCM Grosvenor and Kubient

If you would invest  126.00  in GCM Grosvenor on October 7, 2024 and sell it today you would earn a total of  14.00  from holding GCM Grosvenor or generate 11.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

GCM Grosvenor  vs.  Kubient

GCM Grosvenor

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GCM Grosvenor are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, GCM Grosvenor showed solid returns over the last few months and may actually be approaching a breakup point.

Kubient

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kubient has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Kubient is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with GCM Grosvenor and Kubient

The main advantage of trading using opposite GCM Grosvenor and Kubient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor position performs unexpectedly, Kubient 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 Kubient will offset losses from the drop in Kubient's long position.

The idea behind GCM Grosvenor and Kubient pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.