Correlation Between Carlyle Secured and Golub Capital
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Golub 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 Carlyle Secured and Golub Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Secured Lending and Golub Capital BDC, you can compare the effects of market volatilities on Carlyle Secured and Golub 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 Carlyle Secured with a short position of Golub Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Golub Capital.
Diversification Opportunities for Carlyle Secured and Golub Capital
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlyle and Golub is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Golub Capital BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golub Capital BDC and Carlyle Secured 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 Carlyle Secured Lending are associated (or correlated) with Golub Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golub Capital BDC has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Golub Capital go up and down completely randomly.
Pair Corralation between Carlyle Secured and Golub Capital
Given the investment horizon of 90 days Carlyle Secured Lending is expected to under-perform the Golub Capital. In addition to that, Carlyle Secured is 1.23 times more volatile than Golub Capital BDC. It trades about -0.12 of its total potential returns per unit of risk. Golub Capital BDC is currently generating about -0.07 per unit of volatility. If you would invest 1,551 in Golub Capital BDC on August 27, 2024 and sell it today you would lose (21.00) from holding Golub Capital BDC or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Golub Capital BDC
Performance |
| Timeline |
| Carlyle Secured Lending |
| Golub Capital BDC |
Carlyle Secured and Golub Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Golub Capital
The main advantage of trading using opposite Carlyle Secured and Golub Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Golub 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 Golub Capital will offset losses from the drop in Golub Capital's long position.| Carlyle Secured vs. PowerUp Acquisition Corp | Carlyle Secured vs. Aurora Innovation | Carlyle Secured vs. HUMANA INC | Carlyle Secured vs. Aquagold International |
| Golub Capital vs. BlackRock TCP Capital | Golub Capital vs. Carlyle Secured Lending | Golub Capital vs. Triplepoint Venture Growth | Golub Capital vs. New Mountain Finance |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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