Correlation Between Popular Capital and Gladstone Commercial
Can any of the company-specific risk be diversified away by investing in both Popular Capital and Gladstone Commercial 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 Popular Capital and Gladstone Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Popular Capital Trust and Gladstone Commercial Corp, you can compare the effects of market volatilities on Popular Capital and Gladstone Commercial 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 Popular Capital with a short position of Gladstone Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Popular Capital and Gladstone Commercial.
Diversification Opportunities for Popular Capital and Gladstone Commercial
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Popular and Gladstone is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Popular Capital Trust and Gladstone Commercial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Commercial Corp and Popular 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 Popular Capital Trust are associated (or correlated) with Gladstone Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Commercial Corp has no effect on the direction of Popular Capital i.e., Popular Capital and Gladstone Commercial go up and down completely randomly.
Pair Corralation between Popular Capital and Gladstone Commercial
Assuming the 90 days horizon Popular Capital Trust is expected to generate 0.88 times more return on investment than Gladstone Commercial. However, Popular Capital Trust is 1.14 times less risky than Gladstone Commercial. It trades about 0.04 of its potential returns per unit of risk. Gladstone Commercial Corp is currently generating about -0.09 per unit of risk. If you would invest 2,541 in Popular Capital Trust on November 1, 2024 and sell it today you would earn a total of 40.00 from holding Popular Capital Trust or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Popular Capital Trust vs. Gladstone Commercial Corp
Performance |
| Timeline |
| Popular Capital Trust |
| Gladstone Commercial Corp |
Popular Capital and Gladstone Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Popular Capital and Gladstone Commercial
The main advantage of trading using opposite Popular Capital and Gladstone Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Popular Capital position performs unexpectedly, Gladstone Commercial 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 Commercial will offset losses from the drop in Gladstone Commercial's long position.| Popular Capital vs. BFC Capital Trust | Popular Capital vs. Popular | Popular Capital vs. Oxford Lane Capital | Popular Capital vs. Wintrust Financial Corp |
| Gladstone Commercial vs. Gladstone Commercial Corp | Gladstone Commercial vs. Popular Capital Trust | Gladstone Commercial vs. Oxford Lane Capital | Gladstone Commercial vs. Hovnanian Enterprises PFD |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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