Correlation Between Gladstone Land and Gladstone Land
Can any of the company-specific risk be diversified away by investing in both Gladstone Land and Gladstone 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 Land and Gladstone Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Land Corp and Gladstone Land, you can compare the effects of market volatilities on Gladstone Land and Gladstone 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 Land with a short position of Gladstone Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Land and Gladstone Land.
Diversification Opportunities for Gladstone Land and Gladstone Land
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gladstone and Gladstone is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Land Corp and Gladstone Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Land and Gladstone Land 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 Land Corp are associated (or correlated) with Gladstone Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Land has no effect on the direction of Gladstone Land i.e., Gladstone Land and Gladstone Land go up and down completely randomly.
Pair Corralation between Gladstone Land and Gladstone Land
Assuming the 90 days horizon Gladstone Land is expected to generate 4.03 times less return on investment than Gladstone Land. In addition to that, Gladstone Land is 1.27 times more volatile than Gladstone Land. It trades about 0.01 of its total potential returns per unit of risk. Gladstone Land is currently generating about 0.05 per unit of volatility. If you would invest 1,855 in Gladstone Land on August 30, 2024 and sell it today you would earn a total of 316.00 from holding Gladstone Land or generate 17.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 75.15% |
| Values | Daily Returns |
Gladstone Land Corp vs. Gladstone Land
Performance |
| Timeline |
| Gladstone Land Corp |
| Gladstone Land |
Gladstone Land and Gladstone Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Land and Gladstone Land
The main advantage of trading using opposite Gladstone Land and Gladstone Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Land position performs unexpectedly, Gladstone 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 Gladstone Land will offset losses from the drop in Gladstone Land's long position.| Gladstone Land vs. Gladstone Land Corp | Gladstone Land vs. Gladstone Commercial Corp | Gladstone Land vs. AGNC Investment Corp | Gladstone Land vs. AGNC Investment Corp |
| Gladstone Land vs. EPR Properties Series | Gladstone Land vs. EPR Properties | Gladstone Land vs. EPR Properties | Gladstone Land vs. Gladstone Land Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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