Correlation Between Gladstone Commercial and British Land
Can any of the company-specific risk be diversified away by investing in both Gladstone Commercial and British Land 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 British Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Commercial and British Land, you can compare the effects of market volatilities on Gladstone Commercial and British Land 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 British Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Commercial and British Land.
Diversification Opportunities for Gladstone Commercial and British Land
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gladstone and British is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Commercial and British Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on British Land 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 British Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of British Land has no effect on the direction of Gladstone Commercial i.e., Gladstone Commercial and British Land go up and down completely randomly.
Pair Corralation between Gladstone Commercial and British Land
If you would invest 1,592 in Gladstone Commercial on August 28, 2024 and sell it today you would earn a total of 159.00 from holding Gladstone Commercial or generate 9.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Commercial vs. British Land
Performance |
| Timeline |
| Gladstone Commercial |
| British Land |
Gladstone Commercial and British Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Commercial and British Land
The main advantage of trading using opposite Gladstone Commercial and British Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Commercial position performs unexpectedly, British Land 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 British Land will offset losses from the drop in British Land's long position.| Gladstone Commercial vs. Gladstone Investment | Gladstone Commercial vs. Gladstone Capital | Gladstone Commercial vs. LTC Properties | Gladstone Commercial vs. Dynex Capital |
| British Land vs. Highlands REIT | British Land vs. Fibra UNO | British Land vs. W P Carey | British Land vs. Essential Properties Realty |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |