Correlation Between Gladstone Investment and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and Apollo Investment 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 Gladstone Investment and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and Apollo Investment Corp, you can compare the effects of market volatilities on Gladstone Investment and Apollo Investment 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 Gladstone Investment with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Apollo Investment.
Diversification Opportunities for Gladstone Investment and Apollo Investment
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gladstone and Apollo is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp and Gladstone Investment 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 Gladstone Investment are associated (or correlated) with Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and Apollo Investment go up and down completely randomly.
Pair Corralation between Gladstone Investment and Apollo Investment
Assuming the 90 days horizon Gladstone Investment is expected to generate 17.03 times less return on investment than Apollo Investment. In addition to that, Gladstone Investment is 1.59 times more volatile than Apollo Investment Corp. It trades about 0.01 of its total potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.26 per unit of volatility. If you would invest 1,234 in Apollo Investment Corp on August 31, 2024 and sell it today you would earn a total of 95.00 from holding Apollo Investment Corp or generate 7.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. Apollo Investment Corp
Performance |
| Timeline |
| Gladstone Investment |
| Apollo Investment Corp |
Gladstone Investment and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Apollo Investment
The main advantage of trading using opposite Gladstone Investment and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, Apollo Investment 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 Apollo Investment will offset losses from the drop in Apollo Investment's long position.| Gladstone Investment vs. QUEEN S ROAD | Gladstone Investment vs. Air Transport Services | Gladstone Investment vs. Gold Road Resources | Gladstone Investment vs. GOLD ROAD RES |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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