Correlation Between CBH and Investcorp Credit
Can any of the company-specific risk be diversified away by investing in both CBH and Investcorp 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 CBH and Investcorp Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Investcorp Credit Management, you can compare the effects of market volatilities on CBH and Investcorp 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 CBH with a short position of Investcorp Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Investcorp Credit.
Diversification Opportunities for CBH and Investcorp Credit
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CBH and Investcorp is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Investcorp Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investcorp Credit and CBH 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 CBH are associated (or correlated) with Investcorp Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investcorp Credit has no effect on the direction of CBH i.e., CBH and Investcorp Credit go up and down completely randomly.
Pair Corralation between CBH and Investcorp Credit
If you would invest 304.00 in Investcorp Credit Management on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Investcorp Credit Management or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
CBH vs. Investcorp Credit Management
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Investcorp Credit |
CBH and Investcorp Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Investcorp Credit
The main advantage of trading using opposite CBH and Investcorp Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Investcorp 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 Investcorp Credit will offset losses from the drop in Investcorp Credit's long position.| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
| Investcorp Credit vs. PowerUp Acquisition Corp | Investcorp Credit vs. Aurora Innovation | Investcorp Credit vs. HUMANA INC | Investcorp Credit vs. Aquagold International |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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