Correlation Between Gladstone Commercial and Global Net
Can any of the company-specific risk be diversified away by investing in both Gladstone Commercial and Global Net 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 Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Commercial and Global Net Lease,, you can compare the effects of market volatilities on Gladstone Commercial and Global Net 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 Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Commercial and Global Net.
Diversification Opportunities for Gladstone Commercial and Global Net
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gladstone and Global is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Commercial and Global Net Lease, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease, 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 Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease, has no effect on the direction of Gladstone Commercial i.e., Gladstone Commercial and Global Net go up and down completely randomly.
Pair Corralation between Gladstone Commercial and Global Net
Given the investment horizon of 90 days Gladstone Commercial is expected to generate 0.74 times more return on investment than Global Net. However, Gladstone Commercial is 1.35 times less risky than Global Net. It trades about 0.16 of its potential returns per unit of risk. Global Net Lease, is currently generating about 0.05 per unit of risk. If you would invest 1,165 in Gladstone Commercial on August 27, 2024 and sell it today you would earn a total of 544.00 from holding Gladstone Commercial or generate 46.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Commercial vs. Global Net Lease,
Performance |
| Timeline |
| Gladstone Commercial |
| Global Net Lease, |
Gladstone Commercial and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Commercial and Global Net
The main advantage of trading using opposite Gladstone Commercial and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Commercial position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Gladstone Commercial vs. Gladstone Investment | Gladstone Commercial vs. Gladstone Capital | Gladstone Commercial vs. LTC Properties | Gladstone Commercial vs. Dynex Capital |
| Global Net vs. Peakstone Realty Trust | Global Net vs. Gladstone Commercial | Global Net vs. CTO Realty Growth | Global Net vs. Brightspire 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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