Correlation Between Gladstone Investment and Alstria Office
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and Alstria Office 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 Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and alstria office REIT AG, you can compare the effects of market volatilities on Gladstone Investment and Alstria Office 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 Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Alstria Office.
Diversification Opportunities for Gladstone Investment and Alstria Office
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gladstone and Alstria is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and alstria office REIT AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alstria office REIT 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 Alstria Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alstria office REIT has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and Alstria Office go up and down completely randomly.
Pair Corralation between Gladstone Investment and Alstria Office
Assuming the 90 days horizon Gladstone Investment is expected to generate 0.23 times more return on investment than Alstria Office. However, Gladstone Investment is 4.26 times less risky than Alstria Office. It trades about -0.05 of its potential returns per unit of risk. alstria office REIT AG is currently generating about -0.22 per unit of risk. If you would invest 1,287 in Gladstone Investment on October 11, 2024 and sell it today you would lose (21.00) from holding Gladstone Investment or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. alstria office REIT AG
Performance |
| Timeline |
| Gladstone Investment |
| alstria office REIT |
Gladstone Investment and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Alstria Office
The main advantage of trading using opposite Gladstone Investment and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, Alstria Office 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 Alstria Office will offset losses from the drop in Alstria Office's long position.| Gladstone Investment vs. Stag Industrial | Gladstone Investment vs. Global Ship Lease | Gladstone Investment vs. WT OFFSHORE | Gladstone Investment vs. SIEM OFFSHORE NEW |
| Alstria Office vs. GEAR4MUSIC LS 10 | Alstria Office vs. Automatic Data Processing | Alstria Office vs. DATAGROUP SE | Alstria Office vs. MOVIE GAMES SA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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