Correlation Between FUYO GENERAL and Gladstone Investment
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL 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 FUYO GENERAL and Gladstone Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and Gladstone Investment, you can compare the effects of market volatilities on FUYO GENERAL 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 FUYO GENERAL with a short position of Gladstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and Gladstone Investment.
Diversification Opportunities for FUYO GENERAL and Gladstone Investment
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between FUYO and Gladstone is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and Gladstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Investment and FUYO GENERAL 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 FUYO GENERAL LEASE 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 FUYO GENERAL i.e., FUYO GENERAL and Gladstone Investment go up and down completely randomly.
Pair Corralation between FUYO GENERAL and Gladstone Investment
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to generate 0.96 times more return on investment than Gladstone Investment. However, FUYO GENERAL LEASE is 1.05 times less risky than Gladstone Investment. It trades about 0.07 of its potential returns per unit of risk. Gladstone Investment is currently generating about -0.06 per unit of risk. If you would invest 6,850 in FUYO GENERAL LEASE on September 24, 2024 and sell it today you would earn a total of 100.00 from holding FUYO GENERAL LEASE or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. Gladstone Investment
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| Gladstone Investment |
FUYO GENERAL and Gladstone Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and Gladstone Investment
The main advantage of trading using opposite FUYO GENERAL and Gladstone Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL 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.| FUYO GENERAL vs. Ashtead Group plc | FUYO GENERAL vs. WillScot Mobile Mini | FUYO GENERAL vs. Avis Budget Group | FUYO GENERAL vs. Sixt SE |
| Gladstone Investment vs. Corporate Travel Management | Gladstone Investment vs. FUYO GENERAL LEASE | Gladstone Investment vs. Air Lease | Gladstone Investment vs. STORE ELECTRONIC |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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