Correlation Between Gladstone Investment and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and Atlanticus Holdings 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 Atlanticus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and Atlanticus Holdings, you can compare the effects of market volatilities on Gladstone Investment and Atlanticus Holdings 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 Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Atlanticus Holdings.
Diversification Opportunities for Gladstone Investment and Atlanticus Holdings
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gladstone and Atlanticus is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and Atlanticus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanticus Holdings 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 Atlanticus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanticus Holdings has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between Gladstone Investment and Atlanticus Holdings
Assuming the 90 days horizon Gladstone Investment is expected to generate 1.34 times less return on investment than Atlanticus Holdings. But when comparing it to its historical volatility, Gladstone Investment is 1.31 times less risky than Atlanticus Holdings. It trades about 0.04 of its potential returns per unit of risk. Atlanticus Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,875 in Atlanticus Holdings on September 2, 2024 and sell it today you would earn a total of 532.00 from holding Atlanticus Holdings or generate 28.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. Atlanticus Holdings
Performance |
| Timeline |
| Gladstone Investment |
| Atlanticus Holdings |
Gladstone Investment and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Atlanticus Holdings
The main advantage of trading using opposite Gladstone Investment and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, Atlanticus Holdings 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 Atlanticus Holdings will offset losses from the drop in Atlanticus Holdings' long position.| Gladstone Investment vs. Atlanticus Holdings | Gladstone Investment vs. Great Elm Capital | Gladstone Investment vs. Aquagold International | Gladstone Investment vs. Thrivent High Yield |
| Atlanticus Holdings vs. B Riley Financial | Atlanticus Holdings vs. Atlanticus Holdings Corp | Atlanticus Holdings vs. Atlas Corp | Atlanticus Holdings vs. Harrow Health 8625 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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