Correlation Between CBL Associates and Investcorp Credit
Can any of the company-specific risk be diversified away by investing in both CBL Associates 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 CBL Associates and Investcorp Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBL Associates Properties and Investcorp Credit Management, you can compare the effects of market volatilities on CBL Associates 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 CBL Associates with a short position of Investcorp Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Investcorp Credit.
Diversification Opportunities for CBL Associates and Investcorp Credit
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CBL and Investcorp is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties and Investcorp Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investcorp Credit and CBL Associates 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 CBL Associates Properties 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 CBL Associates i.e., CBL Associates and Investcorp Credit go up and down completely randomly.
Pair Corralation between CBL Associates and Investcorp Credit
Considering the 90-day investment horizon CBL Associates Properties is expected to generate 0.85 times more return on investment than Investcorp Credit. However, CBL Associates Properties is 1.18 times less risky than Investcorp Credit. It trades about 0.3 of its potential returns per unit of risk. Investcorp Credit Management is currently generating about 0.07 per unit of risk. If you would invest 2,512 in CBL Associates Properties on August 26, 2024 and sell it today you would earn a total of 466.00 from holding CBL Associates Properties or generate 18.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL Associates Properties vs. Investcorp Credit Management
Performance |
| Timeline |
| CBL Associates Properties |
| Investcorp Credit |
CBL Associates and Investcorp Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Investcorp Credit
The main advantage of trading using opposite CBL Associates and Investcorp Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates 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.| CBL Associates vs. Investcorp Credit Management | CBL Associates vs. Medalist Diversified Reit | CBL Associates vs. Aquagold International | CBL Associates vs. Morningstar Unconstrained Allocation |
| Investcorp Credit vs. Presidio Property Trust | Investcorp Credit vs. Great Elm Capital | Investcorp Credit vs. Portman Ridge Finance | Investcorp Credit vs. OFS Capital Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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