Correlation Between Gladstone Investment and PT Barito
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and PT Barito 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 PT Barito into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and PT Barito Pacific, you can compare the effects of market volatilities on Gladstone Investment and PT Barito 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 PT Barito. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and PT Barito.
Diversification Opportunities for Gladstone Investment and PT Barito
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gladstone and OB8 is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and PT Barito Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Barito Pacific 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 PT Barito. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Barito Pacific has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and PT Barito go up and down completely randomly.
Pair Corralation between Gladstone Investment and PT Barito
Assuming the 90 days horizon Gladstone Investment is expected to generate 0.2 times more return on investment than PT Barito. However, Gladstone Investment is 4.98 times less risky than PT Barito. It trades about 0.04 of its potential returns per unit of risk. PT Barito Pacific is currently generating about 0.0 per unit of risk. If you would invest 1,133 in Gladstone Investment on September 2, 2024 and sell it today you would earn a total of 168.00 from holding Gladstone Investment or generate 14.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. PT Barito Pacific
Performance |
| Timeline |
| Gladstone Investment |
| PT Barito Pacific |
Gladstone Investment and PT Barito Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and PT Barito
The main advantage of trading using opposite Gladstone Investment and PT Barito positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, PT Barito 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 PT Barito will offset losses from the drop in PT Barito's long position.| Gladstone Investment vs. Plug Power | Gladstone Investment vs. The Bank of | Gladstone Investment vs. Knowles | Gladstone Investment vs. Onxeo SA |
| PT Barito vs. Chesapeake Utilities | PT Barito vs. Canadian Utilities Limited | PT Barito vs. UNITED UTILITIES GR | PT Barito 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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