Correlation Between Diamond Hill and SuRo Capital
Can any of the company-specific risk be diversified away by investing in both Diamond Hill and SuRo 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 Diamond Hill and SuRo Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamond Hill Investment and SuRo Capital Corp, you can compare the effects of market volatilities on Diamond Hill and SuRo 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 Diamond Hill with a short position of SuRo Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Hill and SuRo Capital.
Diversification Opportunities for Diamond Hill and SuRo Capital
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Diamond and SuRo is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Hill Investment and SuRo Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SuRo Capital Corp and Diamond Hill 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 Diamond Hill Investment are associated (or correlated) with SuRo Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SuRo Capital Corp has no effect on the direction of Diamond Hill i.e., Diamond Hill and SuRo Capital go up and down completely randomly.
Pair Corralation between Diamond Hill and SuRo Capital
Given the investment horizon of 90 days Diamond Hill is expected to generate 29.07 times less return on investment than SuRo Capital. But when comparing it to its historical volatility, Diamond Hill Investment is 1.82 times less risky than SuRo Capital. It trades about 0.0 of its potential returns per unit of risk. SuRo Capital Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 387.00 in SuRo Capital Corp on September 12, 2024 and sell it today you would earn a total of 228.00 from holding SuRo Capital Corp or generate 58.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamond Hill Investment vs. SuRo Capital Corp
Performance |
| Timeline |
| Diamond Hill Investment |
| SuRo Capital Corp |
Diamond Hill and SuRo Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamond Hill and SuRo Capital
The main advantage of trading using opposite Diamond Hill and SuRo Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Hill position performs unexpectedly, SuRo 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 SuRo Capital will offset losses from the drop in SuRo Capital's long position.| Diamond Hill vs. Gladstone Investment | Diamond Hill vs. Stellus Capital Investment | Diamond Hill vs. Prospect Capital | Diamond Hill vs. Gladstone Capital |
| SuRo Capital vs. Brightsphere Investment Group | SuRo Capital vs. Blackrock Muniholdings Ca | SuRo Capital vs. Putnam Managed Municipal | SuRo Capital vs. Investcorp Credit Management |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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