Correlation Between Advantage Solutions and GCM Grosvenor
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions 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 Advantage Solutions and GCM Grosvenor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and GCM Grosvenor, you can compare the effects of market volatilities on Advantage Solutions 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 Advantage Solutions with a short position of GCM Grosvenor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and GCM Grosvenor.
Diversification Opportunities for Advantage Solutions and GCM Grosvenor
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advantage and GCM is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and GCM Grosvenor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCM Grosvenor and Advantage Solutions 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 Advantage Solutions 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 Advantage Solutions i.e., Advantage Solutions and GCM Grosvenor go up and down completely randomly.
Pair Corralation between Advantage Solutions and GCM Grosvenor
Considering the 90-day investment horizon Advantage Solutions is expected to generate 5.54 times more return on investment than GCM Grosvenor. However, Advantage Solutions is 5.54 times more volatile than GCM Grosvenor. It trades about 0.14 of its potential returns per unit of risk. GCM Grosvenor is currently generating about 0.06 per unit of risk. If you would invest 115.00 in Advantage Solutions on May 31, 2025 and sell it today you would earn a total of 67.00 from holding Advantage Solutions or generate 58.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advantage Solutions vs. GCM Grosvenor
Performance |
| Timeline |
| Advantage Solutions |
| GCM Grosvenor |
Advantage Solutions and GCM Grosvenor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and GCM Grosvenor
The main advantage of trading using opposite Advantage Solutions and GCM Grosvenor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions 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.| Advantage Solutions vs. Cimpress NV | Advantage Solutions vs. Emerald Expositions Events | Advantage Solutions vs. Marchex | Advantage Solutions vs. Townsquare Media |
| GCM Grosvenor vs. Santech Holdings Limited | GCM Grosvenor vs. MFS Investment Grade | GCM Grosvenor vs. Eaton Vance National | GCM Grosvenor vs. Advantage Solutions |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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