Correlation Between Brookfield Corp and Gladstone Capital
Can any of the company-specific risk be diversified away by investing in both Brookfield Corp and Gladstone 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 Brookfield Corp and Gladstone Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Corp and Gladstone Capital, you can compare the effects of market volatilities on Brookfield Corp and Gladstone 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 Brookfield Corp with a short position of Gladstone Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Corp and Gladstone Capital.
Diversification Opportunities for Brookfield Corp and Gladstone Capital
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brookfield and Gladstone is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Corp and Gladstone Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Capital and Brookfield Corp 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 Brookfield Corp are associated (or correlated) with Gladstone Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Capital has no effect on the direction of Brookfield Corp i.e., Brookfield Corp and Gladstone Capital go up and down completely randomly.
Pair Corralation between Brookfield Corp and Gladstone Capital
Allowing for the 90-day total investment horizon Brookfield Corp is expected to generate 1.6 times more return on investment than Gladstone Capital. However, Brookfield Corp is 1.6 times more volatile than Gladstone Capital. It trades about 0.28 of its potential returns per unit of risk. Gladstone Capital is currently generating about 0.38 per unit of risk. If you would invest 4,784 in Brookfield Corp on August 31, 2024 and sell it today you would earn a total of 1,353 from holding Brookfield Corp or generate 28.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Corp vs. Gladstone Capital
Performance |
| Timeline |
| Brookfield Corp |
| Gladstone Capital |
Brookfield Corp and Gladstone Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Corp and Gladstone Capital
The main advantage of trading using opposite Brookfield Corp and Gladstone Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Corp position performs unexpectedly, Gladstone 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 Gladstone Capital will offset losses from the drop in Gladstone Capital's long position.| Brookfield Corp vs. KKR Co LP | Brookfield Corp vs. Blackstone Group | Brookfield Corp vs. T Rowe Price | Brookfield Corp vs. Apollo Global Management |
| Gladstone Capital vs. PennantPark Floating Rate | Gladstone Capital vs. Horizon Technology Finance | Gladstone Capital vs. Stellus Capital Investment | Gladstone Capital vs. Prospect Capital |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |