Correlation Between Gladstone Commercial and Banpu PCL
Can any of the company-specific risk be diversified away by investing in both Gladstone Commercial and Banpu PCL 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 Commercial and Banpu PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Commercial and Banpu PCL, you can compare the effects of market volatilities on Gladstone Commercial and Banpu PCL 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 Commercial with a short position of Banpu PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Commercial and Banpu PCL.
Diversification Opportunities for Gladstone Commercial and Banpu PCL
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gladstone and Banpu is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Commercial and Banpu PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banpu PCL and Gladstone Commercial 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 Commercial are associated (or correlated) with Banpu PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banpu PCL has no effect on the direction of Gladstone Commercial i.e., Gladstone Commercial and Banpu PCL go up and down completely randomly.
Pair Corralation between Gladstone Commercial and Banpu PCL
Assuming the 90 days horizon Gladstone Commercial is expected to generate 0.38 times more return on investment than Banpu PCL. However, Gladstone Commercial is 2.64 times less risky than Banpu PCL. It trades about 0.02 of its potential returns per unit of risk. Banpu PCL is currently generating about 0.0 per unit of risk. If you would invest 1,423 in Gladstone Commercial on September 23, 2024 and sell it today you would earn a total of 110.00 from holding Gladstone Commercial or generate 7.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Gladstone Commercial vs. Banpu PCL
Performance |
Timeline |
Gladstone Commercial |
Banpu PCL |
Gladstone Commercial and Banpu PCL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gladstone Commercial and Banpu PCL
The main advantage of trading using opposite Gladstone Commercial and Banpu PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Commercial position performs unexpectedly, Banpu PCL 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 Banpu PCL will offset losses from the drop in Banpu PCL's long position.Gladstone Commercial vs. STRAYER EDUCATION | Gladstone Commercial vs. INDOFOOD AGRI RES | Gladstone Commercial vs. International Consolidated Airlines | Gladstone Commercial vs. SINGAPORE AIRLINES |
Banpu PCL vs. CHINA SHENHUA ENA | Banpu PCL vs. China Coal Energy | Banpu PCL vs. Yancoal Australia | Banpu PCL vs. CONSOL Energy |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |