Correlation Between Gladstone Investment and Customers Bancorp
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and Customers Bancorp 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 Customers Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and Customers Bancorp, you can compare the effects of market volatilities on Gladstone Investment and Customers Bancorp 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 Customers Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Customers Bancorp.
Diversification Opportunities for Gladstone Investment and Customers Bancorp
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gladstone and Customers is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and Customers Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Customers Bancorp 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 Customers Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Customers Bancorp has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and Customers Bancorp go up and down completely randomly.
Pair Corralation between Gladstone Investment and Customers Bancorp
Assuming the 90 days horizon Gladstone Investment is expected to generate 0.33 times more return on investment than Customers Bancorp. However, Gladstone Investment is 3.01 times less risky than Customers Bancorp. It trades about 0.07 of its potential returns per unit of risk. Customers Bancorp is currently generating about 0.0 per unit of risk. If you would invest 2,266 in Gladstone Investment on November 9, 2024 and sell it today you would earn a total of 193.00 from holding Gladstone Investment or generate 8.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Gladstone Investment vs. Customers Bancorp
Performance |
| Timeline |
| Gladstone Investment |
| Customers Bancorp |
Gladstone Investment and Customers Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Customers Bancorp
The main advantage of trading using opposite Gladstone Investment and Customers Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, Customers Bancorp 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 Customers Bancorp will offset losses from the drop in Customers Bancorp'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 |
| Customers Bancorp vs. CMS Energy Corp | Customers Bancorp vs. CMS Energy Corp | Customers Bancorp vs. American Financial Group | Customers Bancorp vs. Eagle Point Credit |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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