Correlation Between Gladstone Investment and OFS Capital
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and OFS 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 Gladstone Investment and OFS Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and OFS Capital Corp, you can compare the effects of market volatilities on Gladstone Investment and OFS 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 Gladstone Investment with a short position of OFS Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and OFS Capital.
Diversification Opportunities for Gladstone Investment and OFS Capital
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gladstone and OFS is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and OFS Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFS Capital Corp 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 OFS Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFS Capital Corp has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and OFS Capital go up and down completely randomly.
Pair Corralation between Gladstone Investment and OFS Capital
Given the investment horizon of 90 days Gladstone Investment is expected to under-perform the OFS Capital. In addition to that, Gladstone Investment is 2.24 times more volatile than OFS Capital Corp. It trades about -0.14 of its total potential returns per unit of risk. OFS Capital Corp is currently generating about 0.0 per unit of volatility. If you would invest 815.00 in OFS Capital Corp on August 27, 2024 and sell it today you would earn a total of 0.00 from holding OFS Capital Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. OFS Capital Corp
Performance |
| Timeline |
| Gladstone Investment |
| OFS Capital Corp |
Gladstone Investment and OFS Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and OFS Capital
The main advantage of trading using opposite Gladstone Investment and OFS Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, OFS 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 OFS Capital will offset losses from the drop in OFS Capital's long position.| Gladstone Investment vs. PowerUp Acquisition Corp | Gladstone Investment vs. Aurora Innovation | Gladstone Investment vs. HUMANA INC | Gladstone Investment vs. Aquagold International |
| OFS Capital vs. Stellus Capital Investment | OFS Capital vs. Fidus Investment Corp | OFS Capital vs. Monroe Capital Corp | OFS Capital vs. New Mountain Finance |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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