Correlation Between Gladstone Investment and Shenzhen Investment
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and Shenzhen 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 Shenzhen 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 Shenzhen Investment Holdings, you can compare the effects of market volatilities on Gladstone Investment and Shenzhen 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 Shenzhen Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Shenzhen Investment.
Diversification Opportunities for Gladstone Investment and Shenzhen Investment
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gladstone and Shenzhen is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and Shenzhen Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Investment 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 Shenzhen Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Investment has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and Shenzhen Investment go up and down completely randomly.
Pair Corralation between Gladstone Investment and Shenzhen Investment
If you would invest 2,437 in Gladstone Investment on October 20, 2024 and sell it today you would earn a total of 13.00 from holding Gladstone Investment or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. Shenzhen Investment Holdings
Performance |
| Timeline |
| Gladstone Investment |
| Shenzhen Investment |
Gladstone Investment and Shenzhen Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Shenzhen Investment
The main advantage of trading using opposite Gladstone Investment and Shenzhen Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, Shenzhen 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 Shenzhen Investment will offset losses from the drop in Shenzhen 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 |
| Shenzhen Investment vs. Jiangsu Expressway Co | Shenzhen Investment vs. Jiangsu Expressway | Shenzhen Investment vs. Zhejiang Expressway Co | Shenzhen Investment vs. Yuexiu Transport Infrastructure |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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