Correlation Between Gladstone Capital and Standard Life
Can any of the company-specific risk be diversified away by investing in both Gladstone Capital and Standard Life 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 Standard Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Capital and Standard Life Aberdeen, you can compare the effects of market volatilities on Gladstone Capital and Standard Life 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 Standard Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Capital and Standard Life.
Diversification Opportunities for Gladstone Capital and Standard Life
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gladstone and Standard is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Capital and Standard Life Aberdeen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Life Aberdeen 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 Standard Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Life Aberdeen has no effect on the direction of Gladstone Capital i.e., Gladstone Capital and Standard Life go up and down completely randomly.
Pair Corralation between Gladstone Capital and Standard Life
Given the investment horizon of 90 days Gladstone Capital is expected to generate 0.26 times more return on investment than Standard Life. However, Gladstone Capital is 3.91 times less risky than Standard Life. It trades about 0.1 of its potential returns per unit of risk. Standard Life Aberdeen is currently generating about 0.01 per unit of risk. If you would invest 1,703 in Gladstone Capital on September 3, 2024 and sell it today you would earn a total of 1,086 from holding Gladstone Capital or generate 63.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.95% |
| Values | Daily Returns |
Gladstone Capital vs. Standard Life Aberdeen
Performance |
| Timeline |
| Gladstone Capital |
| Standard Life Aberdeen |
Gladstone Capital and Standard Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Capital and Standard Life
The main advantage of trading using opposite Gladstone Capital and Standard Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Capital position performs unexpectedly, Standard Life 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 Standard Life will offset losses from the drop in Standard Life'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 |
| Standard Life vs. Tri Continental Closed | Standard Life vs. Adams Natural Resources | Standard Life vs. Adams Diversified Equity | Standard Life vs. Schroders PLC |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |