Correlation Between Distoken Acquisition and Crescent Capital
Can any of the company-specific risk be diversified away by investing in both Distoken Acquisition 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 Distoken Acquisition and Crescent Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Distoken Acquisition and Crescent Capital BDC, you can compare the effects of market volatilities on Distoken Acquisition 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 Distoken Acquisition with a short position of Crescent Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Distoken Acquisition and Crescent Capital.
Diversification Opportunities for Distoken Acquisition and Crescent Capital
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Distoken and Crescent is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Distoken Acquisition 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 Distoken Acquisition 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 Distoken Acquisition 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 Distoken Acquisition i.e., Distoken Acquisition and Crescent Capital go up and down completely randomly.
Pair Corralation between Distoken Acquisition and Crescent Capital
Given the investment horizon of 90 days Distoken Acquisition is expected to under-perform the Crescent Capital. But the stock apears to be less risky and, when comparing its historical volatility, Distoken Acquisition is 6.55 times less risky than Crescent Capital. The stock trades about -0.22 of its potential returns per unit of risk. The Crescent Capital BDC is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,893 in Crescent Capital BDC on October 20, 2024 and sell it today you would earn a total of 41.00 from holding Crescent Capital BDC or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Distoken Acquisition vs. Crescent Capital BDC
Performance |
| Timeline |
| Distoken Acquisition |
| Crescent Capital BDC |
Distoken Acquisition and Crescent Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Distoken Acquisition and Crescent Capital
The main advantage of trading using opposite Distoken Acquisition and Crescent Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Distoken Acquisition 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.| Distoken Acquisition vs. Philip Morris International | Distoken Acquisition vs. Getty Realty | Distoken Acquisition vs. Westrock Coffee | Distoken Acquisition vs. Pool Corporation |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |