Correlation Between Gladstone Investment and WuXi AppTec
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and WuXi AppTec 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 WuXi AppTec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and WuXi AppTec Co, you can compare the effects of market volatilities on Gladstone Investment and WuXi AppTec 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 WuXi AppTec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and WuXi AppTec.
Diversification Opportunities for Gladstone Investment and WuXi AppTec
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gladstone and WuXi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and WuXi AppTec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WuXi AppTec 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 WuXi AppTec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WuXi AppTec has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and WuXi AppTec go up and down completely randomly.
Pair Corralation between Gladstone Investment and WuXi AppTec
Given the investment horizon of 90 days Gladstone Investment is expected to generate 0.33 times more return on investment than WuXi AppTec. However, Gladstone Investment is 3.03 times less risky than WuXi AppTec. It trades about 0.03 of its potential returns per unit of risk. WuXi AppTec Co is currently generating about -0.05 per unit of risk. If you would invest 1,356 in Gladstone Investment on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Gladstone Investment or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gladstone Investment vs. WuXi AppTec Co
Performance |
| Timeline |
| Gladstone Investment |
| WuXi AppTec |
Gladstone Investment and WuXi AppTec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and WuXi AppTec
The main advantage of trading using opposite Gladstone Investment and WuXi AppTec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, WuXi AppTec 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 WuXi AppTec will offset losses from the drop in WuXi AppTec'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 |
| WuXi AppTec vs. Neuronetics | WuXi AppTec vs. Intelligent Bio Solutions | WuXi AppTec vs. Biodesix | WuXi AppTec vs. Precipio |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |