Correlation Between Gladstone Investment and Saratoga Investment
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and Saratoga Investment 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 Saratoga Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and Saratoga Investment Corp, you can compare the effects of market volatilities on Gladstone Investment and Saratoga Investment 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 Saratoga Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Saratoga Investment.
Diversification Opportunities for Gladstone Investment and Saratoga Investment
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gladstone and Saratoga is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and Saratoga Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saratoga Investment 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 Saratoga Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saratoga Investment Corp has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and Saratoga Investment go up and down completely randomly.
Pair Corralation between Gladstone Investment and Saratoga Investment
Assuming the 90 days horizon Gladstone Investment is expected to generate 78.5 times less return on investment than Saratoga Investment. But when comparing it to its historical volatility, Gladstone Investment is 1.71 times less risky than Saratoga Investment. It trades about 0.0 of its potential returns per unit of risk. Saratoga Investment Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,415 in Saratoga Investment Corp on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Saratoga Investment Corp or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. Saratoga Investment Corp
Performance |
| Timeline |
| Gladstone Investment |
| Saratoga Investment Corp |
Gladstone Investment and Saratoga Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Saratoga Investment
The main advantage of trading using opposite Gladstone Investment and Saratoga Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, Saratoga Investment 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 Saratoga Investment will offset losses from the drop in Saratoga Investment'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 |
| Saratoga Investment vs. ATS Corporation | Saratoga Investment vs. Deswell Industries | Saratoga Investment vs. Chunghwa Telecom Co | Saratoga Investment vs. Highway Holdings Limited |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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