Correlation Between Gladstone Investment and ALIOR BANK
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and ALIOR BANK 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 ALIOR BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and ALIOR BANK, you can compare the effects of market volatilities on Gladstone Investment and ALIOR BANK 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 ALIOR BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and ALIOR BANK.
Diversification Opportunities for Gladstone Investment and ALIOR BANK
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gladstone and ALIOR is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and ALIOR BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALIOR BANK 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 ALIOR BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALIOR BANK has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and ALIOR BANK go up and down completely randomly.
Pair Corralation between Gladstone Investment and ALIOR BANK
Assuming the 90 days horizon Gladstone Investment is expected to under-perform the ALIOR BANK. But the stock apears to be less risky and, when comparing its historical volatility, Gladstone Investment is 1.58 times less risky than ALIOR BANK. The stock trades about -0.12 of its potential returns per unit of risk. The ALIOR BANK is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,027 in ALIOR BANK on September 20, 2024 and sell it today you would earn a total of 13.00 from holding ALIOR BANK or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. ALIOR BANK
Performance |
| Timeline |
| Gladstone Investment |
| ALIOR BANK |
Gladstone Investment and ALIOR BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and ALIOR BANK
The main advantage of trading using opposite Gladstone Investment and ALIOR BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, ALIOR BANK 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 ALIOR BANK will offset losses from the drop in ALIOR BANK's long position.| Gladstone Investment vs. Lyxor 1 | Gladstone Investment vs. Xtrackers ShortDAX | Gladstone Investment vs. Xtrackers LevDAX |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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