Correlation Between Gladstone Commercial and ASSA ABLOY
Can any of the company-specific risk be diversified away by investing in both Gladstone Commercial and ASSA ABLOY 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 ASSA ABLOY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Commercial Corp and ASSA ABLOY AB, you can compare the effects of market volatilities on Gladstone Commercial and ASSA ABLOY 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 ASSA ABLOY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Commercial and ASSA ABLOY.
Diversification Opportunities for Gladstone Commercial and ASSA ABLOY
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gladstone and ASSA is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Commercial Corp and ASSA ABLOY AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASSA ABLOY AB 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 Corp are associated (or correlated) with ASSA ABLOY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASSA ABLOY AB has no effect on the direction of Gladstone Commercial i.e., Gladstone Commercial and ASSA ABLOY go up and down completely randomly.
Pair Corralation between Gladstone Commercial and ASSA ABLOY
Assuming the 90 days horizon Gladstone Commercial Corp is expected to generate 0.38 times more return on investment than ASSA ABLOY. However, Gladstone Commercial Corp is 2.65 times less risky than ASSA ABLOY. It trades about 0.15 of its potential returns per unit of risk. ASSA ABLOY AB is currently generating about 0.0 per unit of risk. If you would invest 2,259 in Gladstone Commercial Corp on September 2, 2024 and sell it today you would earn a total of 157.00 from holding Gladstone Commercial Corp or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Gladstone Commercial Corp vs. ASSA ABLOY AB
Performance |
| Timeline |
| Gladstone Commercial Corp |
| ASSA ABLOY AB |
Gladstone Commercial and ASSA ABLOY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Commercial and ASSA ABLOY
The main advantage of trading using opposite Gladstone Commercial and ASSA ABLOY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Commercial position performs unexpectedly, ASSA ABLOY 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 ASSA ABLOY will offset losses from the drop in ASSA ABLOY's long position.| Gladstone Commercial vs. Gladstone Commercial Corp | Gladstone Commercial vs. AGNC Investment Corp | Gladstone Commercial vs. AGNC Investment Corp | Gladstone Commercial vs. AGNC Investment Corp |
| ASSA ABLOY vs. Bridger Aerospace Group | ASSA ABLOY vs. ATWEC Technologies | ASSA ABLOY vs. Assa Abloy AB | ASSA ABLOY vs. Brinks Company |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |