Correlation Between Safehold and Gladstone Commercial
Can any of the company-specific risk be diversified away by investing in both Safehold 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 Safehold and Gladstone Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safehold and Gladstone Commercial Corp, you can compare the effects of market volatilities on Safehold 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 Safehold with a short position of Gladstone Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safehold and Gladstone Commercial.
Diversification Opportunities for Safehold and Gladstone Commercial
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Safehold and Gladstone is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Safehold 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 Safehold 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 Safehold 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 Safehold i.e., Safehold and Gladstone Commercial go up and down completely randomly.
Pair Corralation between Safehold and Gladstone Commercial
Given the investment horizon of 90 days Safehold is expected to under-perform the Gladstone Commercial. In addition to that, Safehold is 2.5 times more volatile than Gladstone Commercial Corp. It trades about -0.04 of its total potential returns per unit of risk. Gladstone Commercial Corp is currently generating about -0.02 per unit of volatility. If you would invest 2,412 in Gladstone Commercial Corp on September 4, 2024 and sell it today you would lose (7.00) from holding Gladstone Commercial Corp or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safehold vs. Gladstone Commercial Corp
Performance |
| Timeline |
| Safehold |
| Gladstone Commercial Corp |
Safehold and Gladstone Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safehold and Gladstone Commercial
The main advantage of trading using opposite Safehold and Gladstone Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safehold 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.| Safehold vs. Essential Properties Realty | Safehold vs. Broadstone Net Lease | Safehold vs. Armada Hflr Pr | Safehold vs. CTO Realty Growth |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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