Correlation Between GPT and Ladder Capital
Can any of the company-specific risk be diversified away by investing in both GPT and Ladder Capital 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 GPT and Ladder Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GPT Group and Ladder Capital Corp, you can compare the effects of market volatilities on GPT and Ladder Capital 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 GPT with a short position of Ladder Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of GPT and Ladder Capital.
Diversification Opportunities for GPT and Ladder Capital
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GPT and Ladder is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding GPT Group and Ladder Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladder Capital Corp and GPT 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 GPT Group are associated (or correlated) with Ladder Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladder Capital Corp has no effect on the direction of GPT i.e., GPT and Ladder Capital go up and down completely randomly.
Pair Corralation between GPT and Ladder Capital
Assuming the 90 days horizon GPT is expected to generate 1.07 times less return on investment than Ladder Capital. In addition to that, GPT is 2.21 times more volatile than Ladder Capital Corp. It trades about 0.03 of its total potential returns per unit of risk. Ladder Capital Corp is currently generating about 0.07 per unit of volatility. If you would invest 694.00 in Ladder Capital Corp on December 6, 2024 and sell it today you would earn a total of 396.00 from holding Ladder Capital Corp or generate 57.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
GPT Group vs. Ladder Capital Corp
Performance |
| Timeline |
| GPT Group |
| Ladder Capital Corp |
GPT and Ladder Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GPT and Ladder Capital
The main advantage of trading using opposite GPT and Ladder Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GPT position performs unexpectedly, Ladder Capital 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 Ladder Capital will offset losses from the drop in Ladder Capital's long position.| GPT vs. GREENX METALS LTD | GPT vs. Jacquet Metal Service | GPT vs. IMPERIAL TOBACCO | GPT vs. East Africa Metals |
| Ladder Capital vs. De Grey Mining | Ladder Capital vs. NORTHISLE PERGOLD INC | Ladder Capital vs. GALENA MINING LTD | Ladder Capital vs. GREENX METALS LTD |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |