Correlation Between Ucommune International and Gladstone Commercial
Can any of the company-specific risk be diversified away by investing in both Ucommune International 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 Ucommune International and Gladstone Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Gladstone Commercial, you can compare the effects of market volatilities on Ucommune International 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 Ucommune International with a short position of Gladstone Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Gladstone Commercial.
Diversification Opportunities for Ucommune International and Gladstone Commercial
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ucommune and Gladstone is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Gladstone Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Commercial and Ucommune International 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 Ucommune International 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 has no effect on the direction of Ucommune International i.e., Ucommune International and Gladstone Commercial go up and down completely randomly.
Pair Corralation between Ucommune International and Gladstone Commercial
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Gladstone Commercial. In addition to that, Ucommune International is 1.24 times more volatile than Gladstone Commercial. It trades about -0.06 of its total potential returns per unit of risk. Gladstone Commercial is currently generating about 0.21 per unit of volatility. If you would invest 1,586 in Gladstone Commercial on August 26, 2024 and sell it today you would earn a total of 123.00 from holding Gladstone Commercial or generate 7.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. Gladstone Commercial
Performance |
| Timeline |
| Ucommune International |
| Gladstone Commercial |
Ucommune International and Gladstone Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Gladstone Commercial
The main advantage of trading using opposite Ucommune International and Gladstone Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International 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.| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Avalon GloboCare Corp |
| Gladstone Commercial vs. Gladstone Investment | Gladstone Commercial vs. Gladstone Capital | Gladstone Commercial vs. LTC Properties | Gladstone Commercial vs. Dynex Capital |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |