Correlation Between Gladstone Investment and AMAG Austria
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and AMAG Austria 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 AMAG Austria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and AMAG Austria Metall, you can compare the effects of market volatilities on Gladstone Investment and AMAG Austria 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 AMAG Austria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and AMAG Austria.
Diversification Opportunities for Gladstone Investment and AMAG Austria
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gladstone and AMAG is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and AMAG Austria Metall in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAG Austria Metall 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 AMAG Austria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAG Austria Metall has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and AMAG Austria go up and down completely randomly.
Pair Corralation between Gladstone Investment and AMAG Austria
Assuming the 90 days horizon Gladstone Investment is expected to under-perform the AMAG Austria. But the stock apears to be less risky and, when comparing its historical volatility, Gladstone Investment is 1.99 times less risky than AMAG Austria. The stock trades about -0.06 of its potential returns per unit of risk. The AMAG Austria Metall is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,270 in AMAG Austria Metall on September 24, 2024 and sell it today you would earn a total of 120.00 from holding AMAG Austria Metall or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. AMAG Austria Metall
Performance |
| Timeline |
| Gladstone Investment |
| AMAG Austria Metall |
Gladstone Investment and AMAG Austria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and AMAG Austria
The main advantage of trading using opposite Gladstone Investment and AMAG Austria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, AMAG Austria 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 AMAG Austria will offset losses from the drop in AMAG Austria's long position.| Gladstone Investment vs. Corporate Travel Management | Gladstone Investment vs. FUYO GENERAL LEASE | Gladstone Investment vs. Air Lease | Gladstone Investment vs. STORE ELECTRONIC |
| AMAG Austria vs. Norsk Hydro ASA | AMAG Austria vs. Norsk Hydro ASA | AMAG Austria vs. Alcoa Corp | AMAG Austria vs. Kaiser Aluminum |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |