Correlation Between Gladstone Investment and 83001AAC6

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and 83001AAC6 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 83001AAC6 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and Six Flags Entertainment, you can compare the effects of market volatilities on Gladstone Investment and 83001AAC6 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 83001AAC6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and 83001AAC6.

Diversification Opportunities for Gladstone Investment and 83001AAC6

-0.44
  Correlation Coefficient

Very good diversification

The 3 months correlation between Gladstone and 83001AAC6 is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and Six Flags Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Flags Entertainment 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 83001AAC6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Flags Entertainment has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and 83001AAC6 go up and down completely randomly.

Pair Corralation between Gladstone Investment and 83001AAC6

Assuming the 90 days horizon Gladstone Investment is expected to generate 0.99 times more return on investment than 83001AAC6. However, Gladstone Investment is 1.01 times less risky than 83001AAC6. It trades about 0.07 of its potential returns per unit of risk. Six Flags Entertainment is currently generating about -0.08 per unit of risk. If you would invest  2,450  in Gladstone Investment on October 7, 2024 and sell it today you would earn a total of  19.00  from holding Gladstone Investment or generate 0.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy85.37%
ValuesDaily Returns

Gladstone Investment  vs.  Six Flags Entertainment

 Performance 
       Timeline  
Gladstone Investment 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Gladstone Investment are ranked lower than 3 (%) 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.
Six Flags Entertainment 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Six Flags Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 83001AAC6 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Gladstone Investment and 83001AAC6 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Gladstone Investment and 83001AAC6

The main advantage of trading using opposite Gladstone Investment and 83001AAC6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, 83001AAC6 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 83001AAC6 will offset losses from the drop in 83001AAC6's long position.
The idea behind Gladstone Investment and Six Flags Entertainment 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.
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Complementary Tools

Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Bonds Directory
Find actively traded corporate debentures issued by US companies