Correlation Between Guggenheim Strategic and Gladstone Capital
Can any of the company-specific risk be diversified away by investing in both Guggenheim Strategic and Gladstone Capital 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 Guggenheim Strategic and Gladstone Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Strategic Opportunities and Gladstone Capital, you can compare the effects of market volatilities on Guggenheim Strategic and Gladstone Capital 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 Guggenheim Strategic with a short position of Gladstone Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Strategic and Gladstone Capital.
Diversification Opportunities for Guggenheim Strategic and Gladstone Capital
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guggenheim and Gladstone is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Strategic Opportuni and Gladstone Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Capital and Guggenheim Strategic 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 Guggenheim Strategic Opportunities are associated (or correlated) with Gladstone Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Capital has no effect on the direction of Guggenheim Strategic i.e., Guggenheim Strategic and Gladstone Capital go up and down completely randomly.
Pair Corralation between Guggenheim Strategic and Gladstone Capital
Considering the 90-day investment horizon Guggenheim Strategic is expected to generate 9.19 times less return on investment than Gladstone Capital. But when comparing it to its historical volatility, Guggenheim Strategic Opportunities is 2.61 times less risky than Gladstone Capital. It trades about 0.14 of its potential returns per unit of risk. Gladstone Capital is currently generating about 0.5 of returns per unit of risk over similar time horizon. If you would invest 2,426 in Gladstone Capital on August 29, 2024 and sell it today you would earn a total of 303.00 from holding Gladstone Capital or generate 12.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guggenheim Strategic Opportuni vs. Gladstone Capital
Performance |
| Timeline |
| Guggenheim Strategic |
| Gladstone Capital |
Guggenheim Strategic and Gladstone Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Strategic and Gladstone Capital
The main advantage of trading using opposite Guggenheim Strategic and Gladstone Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Strategic position performs unexpectedly, Gladstone Capital 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 Gladstone Capital will offset losses from the drop in Gladstone Capital's long position.| Guggenheim Strategic vs. Eaton Vance National | Guggenheim Strategic vs. Invesco High Income | Guggenheim Strategic vs. Blackrock Muniholdings Ny | Guggenheim Strategic vs. Nuveen California Select |
| Gladstone Capital vs. Main Street Capital | Gladstone Capital vs. PennantPark Floating Rate | Gladstone Capital vs. Horizon Technology Finance | Gladstone Capital vs. Prospect Capital |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |