Correlation Between GCM Grosvenor and Dominari Holdings

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

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

Diversification Opportunities for GCM Grosvenor and Dominari Holdings

-0.08

Correlation Coefficient

GCM Grosvenor  Dominari Holdings

Good diversification

The 3 months correlation between GCM and Dominari is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Dominari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dominari Holdings 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 Dominari Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dominari Holdings has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Dominari Holdings go up and down completely randomly.

Pair Corralation between GCM Grosvenor and Dominari Holdings

Assuming the 90 days horizon GCM Grosvenor is expected to under-perform the Dominari Holdings. In addition to that, GCM Grosvenor is 1.52 times more volatile than Dominari Holdings. It trades about -0.11 of its total potential returns per unit of risk. Dominari Holdings is currently generating about 0.0 per unit of volatility. If you would invest  505.00  in Dominari Holdings on May 4, 2025 and sell it today you would lose (55.00) from holding Dominari Holdings or give up 10.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

GCM Grosvenor  vs.  Dominari Holdings

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. In spite of abnormal performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Dominari Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dominari Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, Dominari Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with GCM Grosvenor and Dominari Holdings

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

The idea behind GCM Grosvenor and Dominari Holdings 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.