Correlation Between Gladstone Commercial and Natural Health
Can any of the company-specific risk be diversified away by investing in both Gladstone Commercial and Natural Health 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 Commercial and Natural Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Commercial and Natural Health Trends, you can compare the effects of market volatilities on Gladstone Commercial and Natural Health 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 Commercial with a short position of Natural Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Commercial and Natural Health.
Diversification Opportunities for Gladstone Commercial and Natural Health
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gladstone and Natural is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Commercial and Natural Health Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Health Trends and Gladstone Commercial 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 Commercial are associated (or correlated) with Natural Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Health Trends has no effect on the direction of Gladstone Commercial i.e., Gladstone Commercial and Natural Health go up and down completely randomly.
Pair Corralation between Gladstone Commercial and Natural Health
Assuming the 90 days horizon Gladstone Commercial is expected to generate 0.79 times more return on investment than Natural Health. However, Gladstone Commercial is 1.27 times less risky than Natural Health. It trades about 0.12 of its potential returns per unit of risk. Natural Health Trends is currently generating about -0.03 per unit of risk. If you would invest 1,284 in Gladstone Commercial on September 3, 2024 and sell it today you would earn a total of 382.00 from holding Gladstone Commercial or generate 29.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Commercial vs. Natural Health Trends
Performance |
| Timeline |
| Gladstone Commercial |
| Natural Health Trends |
Gladstone Commercial and Natural Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Commercial and Natural Health
The main advantage of trading using opposite Gladstone Commercial and Natural Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Commercial position performs unexpectedly, Natural Health 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 Natural Health will offset losses from the drop in Natural Health's long position.| Gladstone Commercial vs. USU Software AG | Gladstone Commercial vs. CPU SOFTWAREHOUSE | Gladstone Commercial vs. Check Point Software | Gladstone Commercial vs. SIDETRADE EO 1 |
| Natural Health vs. CITY OFFICE REIT | Natural Health vs. WillScot Mobile Mini | Natural Health vs. KIMBALL ELECTRONICS | Natural Health vs. ELECTRONIC ARTS |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |