Correlation Between Gladstone Investment and ATOSS SOFTWARE

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

By analyzing existing cross correlation between Gladstone Investment and ATOSS SOFTWARE, you can compare the effects of market volatilities on Gladstone Investment and ATOSS SOFTWARE 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 ATOSS SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and ATOSS SOFTWARE.

Diversification Opportunities for Gladstone Investment and ATOSS SOFTWARE

-0.18

Correlation Coefficient

Gladstone Investment  ATOSS SOFTWARE

Good diversification

The 3 months correlation between Gladstone and ATOSS is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and ATOSS SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATOSS SOFTWARE 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 ATOSS SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATOSS SOFTWARE has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and ATOSS SOFTWARE go up and down completely randomly.

Pair Corralation between Gladstone Investment and ATOSS SOFTWARE

Assuming the 90 days horizon Gladstone Investment is expected to generate 0.99 times more return on investment than ATOSS SOFTWARE. However, Gladstone Investment is 1.01 times less risky than ATOSS SOFTWARE. It trades about 0.08 of its potential returns per unit of risk. ATOSS SOFTWARE is currently generating about -0.09 per unit of risk. If you would invest  1,179  in Gladstone Investment on September 27, 2024 and sell it today you would earn a total of  110.00  from holding Gladstone Investment or generate 9.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gladstone Investment  vs.  ATOSS SOFTWARE

Gladstone Investment

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gladstone Investment are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Gladstone Investment may actually be approaching a critical reversion point that can send shares even higher in January 2025.

ATOSS SOFTWARE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATOSS SOFTWARE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Gladstone Investment and ATOSS SOFTWARE

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

The idea behind Gladstone Investment and ATOSS SOFTWARE 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.