Correlation Between Ellsworth Growth and Gladstone Investment
Can any of the company-specific risk be diversified away by investing in both Ellsworth Growth 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 Ellsworth Growth and Gladstone Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellsworth Growth and and Gladstone Investment, you can compare the effects of market volatilities on Ellsworth Growth 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 Ellsworth Growth with a short position of Gladstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellsworth Growth and Gladstone Investment.
Diversification Opportunities for Ellsworth Growth and Gladstone Investment
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ellsworth and Gladstone is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ellsworth Growth and and Gladstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Investment and Ellsworth Growth 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 Ellsworth Growth and 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 Ellsworth Growth i.e., Ellsworth Growth and Gladstone Investment go up and down completely randomly.
Pair Corralation between Ellsworth Growth and Gladstone Investment
Assuming the 90 days trading horizon Ellsworth Growth and is expected to under-perform the Gladstone Investment. In addition to that, Ellsworth Growth is 3.53 times more volatile than Gladstone Investment. It trades about -0.05 of its total potential returns per unit of risk. Gladstone Investment is currently generating about 0.09 per unit of volatility. If you would invest 2,403 in Gladstone Investment on October 31, 2024 and sell it today you would earn a total of 57.00 from holding Gladstone Investment or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ellsworth Growth and vs. Gladstone Investment
Performance |
| Timeline |
| Ellsworth Growth |
| Gladstone Investment |
Ellsworth Growth and Gladstone Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellsworth Growth and Gladstone Investment
The main advantage of trading using opposite Ellsworth Growth and Gladstone Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellsworth Growth 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.| Ellsworth Growth vs. Bancroft Fund | Ellsworth Growth vs. GAMCO Natural Resources | Ellsworth Growth vs. The Gabelli Multimedia | Ellsworth Growth vs. GAMCO Global Gold |
| Gladstone Investment vs. Newtek Business Services | Gladstone Investment vs. Oxford Lane Capital | Gladstone Investment vs. Gladstone Investment | Gladstone Investment vs. Gladstone Commercial Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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