Correlation Between Gladstone Investment and LBTCOR

Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and LBTCOR 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 Investment and LBTCOR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gladstone Investment and LBTCOR 10875 15 JAN 31, you can compare the effects of market volatilities on Gladstone Investment and LBTCOR 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 Investment with a short position of LBTCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and LBTCOR.

Diversification Opportunities for Gladstone Investment and LBTCOR

0.66

Correlation Coefficient

Gladstone Investment  LBTCOR

Poor diversification

The 3 months correlation between Gladstone and LBTCOR is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and LBTCOR 10875 15 JAN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LBTCOR 10875 15 and Gladstone Investment 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 Investment are associated (or correlated) with LBTCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LBTCOR 10875 15 has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and LBTCOR go up and down completely randomly.

Pair Corralation between Gladstone Investment and LBTCOR

Assuming the 90 days horizon Gladstone Investment is expected to generate 2.27 times less return on investment than LBTCOR. In addition to that, Gladstone Investment is 5.51 times more volatile than LBTCOR 10875 15 JAN 31. It trades about 0.09 of its total potential returns per unit of risk. LBTCOR 10875 15 JAN 31 is currently generating about 1.14 per unit of volatility. If you would invest  10,700  in LBTCOR 10875 15 JAN 31 on October 27, 2024 and sell it today you would earn a total of  24.00  from holding LBTCOR 10875 15 JAN 31 or generate 0.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	15.79%
Values	Daily Returns

Gladstone Investment  vs.  LBTCOR 10875 15 JAN 31

Gladstone Investment

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gladstone Investment are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Gladstone Investment is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

LBTCOR 10875 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LBTCOR 10875 15 JAN 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for LBTCOR 10875 15 JAN 31 investors.

Pair Trading with Gladstone Investment and LBTCOR

The main advantage of trading using opposite Gladstone Investment and LBTCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, LBTCOR 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 LBTCOR will offset losses from the drop in LBTCOR's long position.

The idea behind Gladstone Investment and LBTCOR 10875 15 JAN 31 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.