Correlation Between GCM Grosvenor and Dundee Precious

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

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

Diversification Opportunities for GCM Grosvenor and Dundee Precious

-0.63

Correlation Coefficient

GCM Grosvenor  Dundee Precious

Excellent diversification

The 3 months correlation between GCM and Dundee is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and Dundee Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dundee Precious Metals 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 Dundee Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dundee Precious Metals has no effect on the direction of GCM Grosvenor i.e., GCM Grosvenor and Dundee Precious go up and down completely randomly.

Pair Corralation between GCM Grosvenor and Dundee Precious

Assuming the 90 days horizon GCM Grosvenor is expected to under-perform the Dundee Precious. In addition to that, GCM Grosvenor is 3.71 times more volatile than Dundee Precious Metals. It trades about -0.11 of its total potential returns per unit of risk. Dundee Precious Metals is currently generating about 0.15 per unit of volatility. If you would invest  1,323  in Dundee Precious Metals on May 4, 2025 and sell it today you would earn a total of  302.00  from holding Dundee Precious Metals or generate 22.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.16%
Values	Daily Returns

GCM Grosvenor  vs.  Dundee Precious Metals

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.

Dundee Precious Metals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dundee Precious Metals are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Dundee Precious reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GCM Grosvenor and Dundee Precious

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

The idea behind GCM Grosvenor and Dundee Precious Metals 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.