Correlation Between Gladstone Commercial and HR Real
Can any of the company-specific risk be diversified away by investing in both Gladstone Commercial and HR Real 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 HR Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Commercial and HR Real Estate, you can compare the effects of market volatilities on Gladstone Commercial and HR Real 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 HR Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Commercial and HR Real.
Diversification Opportunities for Gladstone Commercial and HR Real
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gladstone and HRUFF is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Commercial and HR Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HR Real Estate 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 HR Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HR Real Estate has no effect on the direction of Gladstone Commercial i.e., Gladstone Commercial and HR Real go up and down completely randomly.
Pair Corralation between Gladstone Commercial and HR Real
Given the investment horizon of 90 days Gladstone Commercial is expected to generate 1.15 times more return on investment than HR Real. However, Gladstone Commercial is 1.15 times more volatile than HR Real Estate. It trades about 0.11 of its potential returns per unit of risk. HR Real Estate is currently generating about -0.32 per unit of risk. If you would invest 1,590 in Gladstone Commercial on September 13, 2024 and sell it today you would earn a total of 103.00 from holding Gladstone Commercial or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Gladstone Commercial vs. HR Real Estate
Performance |
| Timeline |
| Gladstone Commercial |
| HR Real Estate |
Gladstone Commercial and HR Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Commercial and HR Real
The main advantage of trading using opposite Gladstone Commercial and HR Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Commercial position performs unexpectedly, HR Real 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 HR Real will offset losses from the drop in HR Real's long position.| Gladstone Commercial vs. Boston Properties | Gladstone Commercial vs. Douglas Emmett | Gladstone Commercial vs. Kilroy Realty Corp | Gladstone Commercial vs. Alexandria Real Estate |
| HR Real vs. Generationome Properties | HR Real vs. Modiv Inc | HR Real vs. Broadstone Net Lease | HR Real vs. Gladstone Commercial |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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