Correlation Between Santech Holdings and GCM Grosvenor
Can any of the company-specific risk be diversified away by investing in both Santech Holdings 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 Santech Holdings and GCM Grosvenor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santech Holdings Limited and GCM Grosvenor, you can compare the effects of market volatilities on Santech Holdings 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 Santech Holdings with a short position of GCM Grosvenor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santech Holdings and GCM Grosvenor.
Diversification Opportunities for Santech Holdings and GCM Grosvenor
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Santech and GCM is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Santech Holdings Limited and GCM Grosvenor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCM Grosvenor and Santech Holdings 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 Santech Holdings Limited 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 Santech Holdings i.e., Santech Holdings and GCM Grosvenor go up and down completely randomly.
Pair Corralation between Santech Holdings and GCM Grosvenor
Given the investment horizon of 90 days Santech Holdings Limited is expected to under-perform the GCM Grosvenor. In addition to that, Santech Holdings is 6.05 times more volatile than GCM Grosvenor. It trades about -0.03 of its total potential returns per unit of risk. GCM Grosvenor is currently generating about 0.29 per unit of volatility. If you would invest 1,188 in GCM Grosvenor on May 29, 2025 and sell it today you would earn a total of 117.00 from holding GCM Grosvenor or generate 9.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santech Holdings Limited vs. GCM Grosvenor
Performance |
| Timeline |
| Santech Holdings |
| GCM Grosvenor |
Santech Holdings and GCM Grosvenor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santech Holdings and GCM Grosvenor
The main advantage of trading using opposite Santech Holdings and GCM Grosvenor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santech Holdings 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.| Santech Holdings vs. Pool Corporation | Santech Holdings vs. Cadence Design Systems | Santech Holdings vs. Arhaus Inc | Santech Holdings vs. Kingdee International Software |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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