Correlation Between Gladstone Investment and Caseys General
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and Caseys General 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 Caseys General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and Caseys General Stores, you can compare the effects of market volatilities on Gladstone Investment and Caseys General 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 Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Caseys General.
Diversification Opportunities for Gladstone Investment and Caseys General
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gladstone and Caseys is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores 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 Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and Caseys General go up and down completely randomly.
Pair Corralation between Gladstone Investment and Caseys General
Assuming the 90 days horizon Gladstone Investment is expected to under-perform the Caseys General. In addition to that, Gladstone Investment is 1.0 times more volatile than Caseys General Stores. It trades about -0.01 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.25 per unit of volatility. If you would invest 35,551 in Caseys General Stores on August 25, 2024 and sell it today you would earn a total of 4,049 from holding Caseys General Stores or generate 11.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. Caseys General Stores
Performance |
| Timeline |
| Gladstone Investment |
| Caseys General Stores |
Gladstone Investment and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Caseys General
The main advantage of trading using opposite Gladstone Investment and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| Gladstone Investment vs. Lyxor 1 | Gladstone Investment vs. Xtrackers LevDAX | Gladstone Investment vs. Xtrackers ShortDAX |
| Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |