Correlation Between Gladstone Capital and Nuveen New
Can any of the company-specific risk be diversified away by investing in both Gladstone Capital and Nuveen New 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 Capital and Nuveen New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Capital and Nuveen New York, you can compare the effects of market volatilities on Gladstone Capital and Nuveen New 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 Capital with a short position of Nuveen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Capital and Nuveen New.
Diversification Opportunities for Gladstone Capital and Nuveen New
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gladstone and Nuveen is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Capital and Nuveen New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen New York and Gladstone Capital 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 Capital are associated (or correlated) with Nuveen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen New York has no effect on the direction of Gladstone Capital i.e., Gladstone Capital and Nuveen New go up and down completely randomly.
Pair Corralation between Gladstone Capital and Nuveen New
Given the investment horizon of 90 days Gladstone Capital is expected to generate 2.32 times more return on investment than Nuveen New. However, Gladstone Capital is 2.32 times more volatile than Nuveen New York. It trades about 0.19 of its potential returns per unit of risk. Nuveen New York is currently generating about 0.02 per unit of risk. If you would invest 1,774 in Gladstone Capital on November 3, 2024 and sell it today you would earn a total of 1,203 from holding Gladstone Capital or generate 67.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Capital vs. Nuveen New York
Performance |
| Timeline |
| Gladstone Capital |
| Nuveen New York |
Gladstone Capital and Nuveen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Capital and Nuveen New
The main advantage of trading using opposite Gladstone Capital and Nuveen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Capital position performs unexpectedly, Nuveen New 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 Nuveen New will offset losses from the drop in Nuveen New's long position.| Gladstone Capital vs. Main Street Capital | Gladstone Capital vs. PennantPark Floating Rate | Gladstone Capital vs. Horizon Technology Finance | Gladstone Capital vs. Prospect Capital |
| Nuveen New vs. Western Asset Municipal | Nuveen New vs. Nuveen Massachusetts Quality | Nuveen New vs. Fiera Capital | Nuveen New vs. European Equity Closed |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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