Correlation Between New York and Gladstone Commercial
Can any of the company-specific risk be diversified away by investing in both New York and Gladstone Commercial 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 New York and Gladstone Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New York Mortgage and Gladstone Commercial Corp, you can compare the effects of market volatilities on New York and Gladstone Commercial 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 New York with a short position of Gladstone Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and Gladstone Commercial.
Diversification Opportunities for New York and Gladstone Commercial
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Gladstone is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding New York Mortgage and Gladstone Commercial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Commercial Corp and New York 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 New York Mortgage are associated (or correlated) with Gladstone Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Commercial Corp has no effect on the direction of New York i.e., New York and Gladstone Commercial go up and down completely randomly.
Pair Corralation between New York and Gladstone Commercial
Assuming the 90 days horizon New York is expected to generate 1.5 times less return on investment than Gladstone Commercial. But when comparing it to its historical volatility, New York Mortgage is 1.56 times less risky than Gladstone Commercial. It trades about 0.1 of its potential returns per unit of risk. Gladstone Commercial Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,656 in Gladstone Commercial Corp on August 28, 2024 and sell it today you would earn a total of 762.00 from holding Gladstone Commercial Corp or generate 46.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New York Mortgage vs. Gladstone Commercial Corp
Performance |
| Timeline |
| New York Mortgage |
| Gladstone Commercial Corp |
New York and Gladstone Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New York and Gladstone Commercial
The main advantage of trading using opposite New York and Gladstone Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York position performs unexpectedly, Gladstone Commercial 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 Commercial will offset losses from the drop in Gladstone Commercial's long position.| New York vs. Annaly Capital Management | New York vs. Invesco Mortgage Capital | New York vs. Invesco Mortgage Capital | New York vs. Chimera Investment |
| Gladstone Commercial vs. Gladstone Commercial Corp | Gladstone Commercial vs. AGNC Investment Corp | Gladstone Commercial vs. AGNC Investment Corp | Gladstone Commercial vs. AGNC Investment 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |