Correlation Between Binah Capital and Gladstone Investment
Can any of the company-specific risk be diversified away by investing in both Binah Capital and Gladstone Investment 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 Binah Capital and Gladstone Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binah Capital Group, and Gladstone Investment, you can compare the effects of market volatilities on Binah Capital and Gladstone Investment 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 Binah Capital with a short position of Gladstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binah Capital and Gladstone Investment.
Diversification Opportunities for Binah Capital and Gladstone Investment
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Binah and Gladstone is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Binah Capital Group, and Gladstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Investment and Binah Capital 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 Binah Capital Group, are associated (or correlated) with Gladstone Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Investment has no effect on the direction of Binah Capital i.e., Binah Capital and Gladstone Investment go up and down completely randomly.
Pair Corralation between Binah Capital and Gladstone Investment
Assuming the 90 days horizon Binah Capital Group, is expected to generate 205.56 times more return on investment than Gladstone Investment. However, Binah Capital is 205.56 times more volatile than Gladstone Investment. It trades about 0.13 of its potential returns per unit of risk. Gladstone Investment is currently generating about 0.09 per unit of risk. If you would invest 1.16 in Binah Capital Group, on January 20, 2025 and sell it today you would earn a total of 2.69 from holding Binah Capital Group, or generate 231.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 56.73% |
| Values | Daily Returns |
Binah Capital Group, vs. Gladstone Investment
Performance |
| Timeline |
| Binah Capital Group, |
| Gladstone Investment |
Binah Capital and Gladstone Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binah Capital and Gladstone Investment
The main advantage of trading using opposite Binah Capital and Gladstone Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binah Capital position performs unexpectedly, Gladstone Investment 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 Gladstone Investment will offset losses from the drop in Gladstone Investment's long position.| Binah Capital vs. Paiute Oil Mining | Binah Capital vs. Copperbank Resources Corp | Binah Capital vs. Nordic Semiconductor ASA | Binah Capital vs. United Microelectronics |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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