Correlation Between Gladstone Investment and AstraZeneca PLC
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and AstraZeneca PLC 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 AstraZeneca PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and AstraZeneca PLC, you can compare the effects of market volatilities on Gladstone Investment and AstraZeneca PLC 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 AstraZeneca PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and AstraZeneca PLC.
Diversification Opportunities for Gladstone Investment and AstraZeneca PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gladstone and AstraZeneca is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and AstraZeneca PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstraZeneca PLC 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 AstraZeneca PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AstraZeneca PLC has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and AstraZeneca PLC go up and down completely randomly.
Pair Corralation between Gladstone Investment and AstraZeneca PLC
If you would invest 1,199 in Gladstone Investment on September 15, 2024 and sell it today you would earn a total of 106.00 from holding Gladstone Investment or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.77% |
| Values | Daily Returns |
Gladstone Investment vs. AstraZeneca PLC
Performance |
| Timeline |
| Gladstone Investment |
| AstraZeneca PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gladstone Investment and AstraZeneca PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and AstraZeneca PLC
The main advantage of trading using opposite Gladstone Investment and AstraZeneca PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, AstraZeneca PLC 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 AstraZeneca PLC will offset losses from the drop in AstraZeneca PLC's long position.| Gladstone Investment vs. Lyxor 1 | Gladstone Investment vs. Xtrackers ShortDAX | Gladstone Investment vs. Xtrackers LevDAX |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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