Correlation Between XAI Octagon and Gdl Closed
Can any of the company-specific risk be diversified away by investing in both XAI Octagon and Gdl Closed 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 XAI Octagon and Gdl Closed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XAI Octagon Floating and Gdl Closed Fund, you can compare the effects of market volatilities on XAI Octagon and Gdl Closed 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 XAI Octagon with a short position of Gdl Closed. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAI Octagon and Gdl Closed.
Diversification Opportunities for XAI Octagon and Gdl Closed
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between XAI and Gdl is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding XAI Octagon Floating and Gdl Closed Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gdl Closed Fund and XAI Octagon 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 XAI Octagon Floating are associated (or correlated) with Gdl Closed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gdl Closed Fund has no effect on the direction of XAI Octagon i.e., XAI Octagon and Gdl Closed go up and down completely randomly.
Pair Corralation between XAI Octagon and Gdl Closed
Given the investment horizon of 90 days XAI Octagon Floating is expected to generate 2.07 times more return on investment than Gdl Closed. However, XAI Octagon is 2.07 times more volatile than Gdl Closed Fund. It trades about 0.1 of its potential returns per unit of risk. Gdl Closed Fund is currently generating about 0.08 per unit of risk. If you would invest 532.00 in XAI Octagon Floating on September 4, 2024 and sell it today you would earn a total of 183.00 from holding XAI Octagon Floating or generate 34.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XAI Octagon Floating vs. Gdl Closed Fund
Performance |
| Timeline |
| XAI Octagon Floating |
| Gdl Closed Fund |
XAI Octagon and Gdl Closed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XAI Octagon and Gdl Closed
The main advantage of trading using opposite XAI Octagon and Gdl Closed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XAI Octagon position performs unexpectedly, Gdl Closed 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 Gdl Closed will offset losses from the drop in Gdl Closed's long position.| XAI Octagon vs. Oxford Lane Capital | XAI Octagon vs. Capital Southwest | XAI Octagon vs. Cornerstone Strategic Return | XAI Octagon vs. Cornerstone Strategic Value |
| Gdl Closed vs. MFS Investment Grade | Gdl Closed vs. Invesco High Income | Gdl Closed vs. Eaton Vance National | Gdl Closed vs. Federated Premier Municipal |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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