Correlation Between Gladstone Investment and SDAX Index
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By analyzing existing cross correlation between Gladstone Investment and SDAX Index, you can compare the effects of market volatilities on Gladstone Investment and SDAX Index 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 SDAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and SDAX Index.
Diversification Opportunities for Gladstone Investment and SDAX Index
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gladstone and SDAX is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and SDAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDAX Index 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 SDAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDAX Index has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and SDAX Index go up and down completely randomly.
Pair Corralation between Gladstone Investment and SDAX Index
Assuming the 90 days horizon Gladstone Investment is expected to generate 1.56 times more return on investment than SDAX Index. However, Gladstone Investment is 1.56 times more volatile than SDAX Index. It trades about 0.05 of its potential returns per unit of risk. SDAX Index is currently generating about 0.02 per unit of risk. If you would invest 897.00 in Gladstone Investment on October 23, 2024 and sell it today you would earn a total of 391.00 from holding Gladstone Investment or generate 43.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Gladstone Investment vs. SDAX Index
Performance |
| Timeline |
Gladstone Investment and SDAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Gladstone Investment
Pair trading matchups for Gladstone Investment
SDAX Index
Pair trading matchups for SDAX Index
Pair Trading with Gladstone Investment and SDAX Index
The main advantage of trading using opposite Gladstone Investment and SDAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, SDAX Index 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 SDAX Index will offset losses from the drop in SDAX Index's long position.| Gladstone Investment vs. Cleanaway Waste Management | Gladstone Investment vs. Coor Service Management | Gladstone Investment vs. CEOTRONICS | Gladstone Investment vs. Platinum Investment Management |
| SDAX Index vs. PLAY2CHILL SA ZY | SDAX Index vs. USWE SPORTS AB | SDAX Index vs. EBRO FOODS | SDAX Index vs. LG Display Co |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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