Correlation Between Gladstone Investment and Meteoric Resources

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

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

Diversification Opportunities for Gladstone Investment and Meteoric Resources

-0.18

Correlation Coefficient

Gladstone Investment  Meteoric Resources

Good diversification

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

Pair Corralation between Gladstone Investment and Meteoric Resources

Assuming the 90 days horizon Gladstone Investment is expected to generate 22.91 times less return on investment than Meteoric Resources. But when comparing it to its historical volatility, Gladstone Investment is 13.27 times less risky than Meteoric Resources. It trades about 0.06 of its potential returns per unit of risk. Meteoric Resources NL is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  5.75  in Meteoric Resources NL on May 6, 2025 and sell it today you would earn a total of  1.95  from holding Meteoric Resources NL or generate 33.91% 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.  Meteoric Resources NL

Gladstone Investment

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gladstone Investment are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Gladstone Investment is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Meteoric Resources

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Meteoric Resources NL are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Meteoric Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gladstone Investment and Meteoric Resources

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

The idea behind Gladstone Investment and Meteoric Resources NL 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.