Correlation Between GCM Grosvenor and Adapthealth Corp

Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor and Adapthealth 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 Adapthealth 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 Adapthealth Corp, you can compare the effects of market volatilities on GCM Grosvenor and Adapthealth 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 Adapthealth Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Adapthealth Corp.

Diversification Opportunities for GCM Grosvenor and Adapthealth Corp

-0.26

Correlation Coefficient

GCM Grosvenor  Adapthealth Corp

Very good diversification

The 3 months correlation between GCM and Adapthealth is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Adapthealth Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adapthealth 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 Adapthealth Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adapthealth Corp has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Adapthealth Corp go up and down completely randomly.

Pair Corralation between GCM Grosvenor and Adapthealth Corp

Given the investment horizon of 90 days GCM Grosvenor is expected to under-perform the Adapthealth Corp. But the stock apears to be less risky and, when comparing its historical volatility, GCM Grosvenor is 1.99 times less risky than Adapthealth Corp. The stock trades about -0.06 of its potential returns per unit of risk. The Adapthealth Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  824.00  in Adapthealth Corp on May 7, 2025 and sell it today you would earn a total of  87.00  from holding Adapthealth Corp or generate 10.56% 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.  Adapthealth Corp

GCM Grosvenor

Risk-Adjusted Performance

Very Weak

Over the last 90 days GCM Grosvenor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, GCM Grosvenor is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Adapthealth Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Adapthealth Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, Adapthealth Corp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with GCM Grosvenor and Adapthealth Corp

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

The idea behind GCM Grosvenor and Adapthealth Corp 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.