Correlation Between Gladstone Investment and Associated Banc-Corp
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and Associated Banc-Corp 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 Associated Banc-Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and Associated Banc Corp Depositary, you can compare the effects of market volatilities on Gladstone Investment and Associated Banc-Corp 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 Associated Banc-Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Associated Banc-Corp.
Diversification Opportunities for Gladstone Investment and Associated Banc-Corp
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gladstone and Associated is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and Associated Banc Corp Depositar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Banc 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 Associated Banc-Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Banc Corp has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and Associated Banc-Corp go up and down completely randomly.
Pair Corralation between Gladstone Investment and Associated Banc-Corp
Assuming the 90 days horizon Gladstone Investment is expected to generate 0.17 times more return on investment than Associated Banc-Corp. However, Gladstone Investment is 5.82 times less risky than Associated Banc-Corp. It trades about 0.19 of its potential returns per unit of risk. Associated Banc Corp Depositary is currently generating about -0.11 per unit of risk. If you would invest 2,437 in Gladstone Investment on November 7, 2024 and sell it today you would earn a total of 19.00 from holding Gladstone Investment or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Gladstone Investment vs. Associated Banc Corp Depositar
Performance |
| Timeline |
| Gladstone Investment |
| Associated Banc Corp |
Gladstone Investment and Associated Banc-Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Associated Banc-Corp
The main advantage of trading using opposite Gladstone Investment and Associated Banc-Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, Associated Banc-Corp 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 Associated Banc-Corp will offset losses from the drop in Associated Banc-Corp's long position.| Gladstone Investment vs. Newtek Business Services | Gladstone Investment vs. Oxford Lane Capital | Gladstone Investment vs. Gladstone Investment | Gladstone Investment vs. Gladstone Commercial Corp |
| Associated Banc-Corp vs. Sealed Air | Associated Banc-Corp vs. Luxfer Holdings PLC | Associated Banc-Corp vs. Infosys Ltd ADR | Associated Banc-Corp vs. CF Industries Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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