Correlation Between Broad Capital and FS Credit
Can any of the company-specific risk be diversified away by investing in both Broad Capital and FS Credit 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 Broad Capital and FS Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broad Capital Acquisition and FS Credit Opportunities, you can compare the effects of market volatilities on Broad Capital and FS Credit 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 Broad Capital with a short position of FS Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broad Capital and FS Credit.
Diversification Opportunities for Broad Capital and FS Credit
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Broad and FSCO is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Broad Capital Acquisition and FS Credit Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS Credit Opportunities and Broad Capital 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 Broad Capital Acquisition are associated (or correlated) with FS Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS Credit Opportunities has no effect on the direction of Broad Capital i.e., Broad Capital and FS Credit go up and down completely randomly.
Pair Corralation between Broad Capital and FS Credit
If you would invest 661.00 in FS Credit Opportunities on September 2, 2024 and sell it today you would earn a total of 19.00 from holding FS Credit Opportunities or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broad Capital Acquisition vs. FS Credit Opportunities
Performance |
| Timeline |
| Broad Capital Acquisition |
| FS Credit Opportunities |
Broad Capital and FS Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broad Capital and FS Credit
The main advantage of trading using opposite Broad Capital and FS Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broad Capital position performs unexpectedly, FS Credit 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 FS Credit will offset losses from the drop in FS Credit's long position.| Broad Capital vs. Visa Class A | Broad Capital vs. Diamond Hill Investment | Broad Capital vs. Distoken Acquisition | Broad Capital vs. Associated Capital Group |
| FS Credit vs. MFS Investment Grade | FS Credit vs. Invesco High Income | FS Credit vs. Eaton Vance National | FS Credit vs. Federated Premier Municipal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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