Correlation Between Gladstone Investment and US Global
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and US Global 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 Gladstone Investment and US Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and US Global Investors, you can compare the effects of market volatilities on Gladstone Investment and US Global 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 Gladstone Investment with a short position of US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and US Global.
Diversification Opportunities for Gladstone Investment and US Global
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gladstone and GROW is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors and Gladstone Investment 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 Gladstone Investment are associated (or correlated) with US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and US Global go up and down completely randomly.
Pair Corralation between Gladstone Investment and US Global
Given the investment horizon of 90 days Gladstone Investment is expected to generate 1.0 times more return on investment than US Global. However, Gladstone Investment is 1.0 times more volatile than US Global Investors. It trades about 0.04 of its potential returns per unit of risk. US Global Investors is currently generating about -0.03 per unit of risk. If you would invest 1,277 in Gladstone Investment on August 24, 2024 and sell it today you would earn a total of 73.00 from holding Gladstone Investment or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. US Global Investors
Performance |
| Timeline |
| Gladstone Investment |
| US Global Investors |
Gladstone Investment and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and US Global
The main advantage of trading using opposite Gladstone Investment and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.| Gladstone Investment vs. PennantPark Floating Rate | Gladstone Investment vs. Horizon Technology Finance | Gladstone Investment vs. Stellus Capital Investment | Gladstone Investment vs. Prospect Capital |
| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |