Correlation Between Eagle Point and Golub Capital
Can any of the company-specific risk be diversified away by investing in both Eagle Point 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 Eagle Point and Golub Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Point Credit and Golub Capital BDC, you can compare the effects of market volatilities on Eagle Point 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 Eagle Point with a short position of Golub Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Golub Capital.
Diversification Opportunities for Eagle Point and Golub Capital
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eagle and Golub is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit 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 Eagle Point 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 Eagle Point Credit 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 Eagle Point i.e., Eagle Point and Golub Capital go up and down completely randomly.
Pair Corralation between Eagle Point and Golub Capital
Considering the 90-day investment horizon Eagle Point Credit is expected to generate 0.79 times more return on investment than Golub Capital. However, Eagle Point Credit is 1.26 times less risky than Golub Capital. It trades about 0.08 of its potential returns per unit of risk. Golub Capital BDC is currently generating about 0.06 per unit of risk. If you would invest 779.00 in Eagle Point Credit on August 24, 2024 and sell it today you would earn a total of 115.00 from holding Eagle Point Credit or generate 14.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Point Credit vs. Golub Capital BDC
Performance |
| Timeline |
| Eagle Point Credit |
| Golub Capital BDC |
Eagle Point and Golub Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Point and Golub Capital
The main advantage of trading using opposite Eagle Point and Golub Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point 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.| Eagle Point vs. Cornerstone Strategic Return | Eagle Point vs. Cornerstone Strategic Value | Eagle Point vs. Oxford Square Capital | Eagle Point vs. Guggenheim Strategic Opportunities |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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