Correlation Between Chubb and Crescent Capital
Can any of the company-specific risk be diversified away by investing in both Chubb and Crescent Capital 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 Chubb and Crescent Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chubb and Crescent Capital BDC, you can compare the effects of market volatilities on Chubb and Crescent Capital 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 Chubb with a short position of Crescent Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chubb and Crescent Capital.
Diversification Opportunities for Chubb and Crescent Capital
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chubb and Crescent is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Chubb and Crescent Capital BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Capital BDC and Chubb 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 Chubb are associated (or correlated) with Crescent Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent Capital BDC has no effect on the direction of Chubb i.e., Chubb and Crescent Capital go up and down completely randomly.
Pair Corralation between Chubb and Crescent Capital
Allowing for the 90-day total investment horizon Chubb is expected to under-perform the Crescent Capital. In addition to that, Chubb is 1.45 times more volatile than Crescent Capital BDC. It trades about 0.0 of its total potential returns per unit of risk. Crescent Capital BDC is currently generating about 0.1 per unit of volatility. If you would invest 1,921 in Crescent Capital BDC on November 3, 2024 and sell it today you would earn a total of 37.00 from holding Crescent Capital BDC or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Chubb vs. Crescent Capital BDC
Performance |
| Timeline |
| Chubb |
| Crescent Capital BDC |
Chubb and Crescent Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chubb and Crescent Capital
The main advantage of trading using opposite Chubb and Crescent Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chubb position performs unexpectedly, Crescent Capital 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 Crescent Capital will offset losses from the drop in Crescent Capital's long position.| Chubb vs. Cincinnati Financial | Chubb vs. Aflac Incorporated | Chubb vs. Dover | Chubb vs. Franklin Resources |
| Crescent Capital vs. BlackRock TCP Capital | Crescent Capital vs. Triplepoint Venture Growth | Crescent Capital vs. Sixth Street Specialty | Crescent Capital vs. Golub Capital BDC |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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