Correlation Between Evercore Partners and Golub Capital
Can any of the company-specific risk be diversified away by investing in both Evercore Partners 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 Evercore Partners and Golub Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evercore Partners and Golub Capital BDC, you can compare the effects of market volatilities on Evercore Partners 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 Evercore Partners with a short position of Golub Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evercore Partners and Golub Capital.
Diversification Opportunities for Evercore Partners and Golub Capital
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Evercore and Golub is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Evercore Partners 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 Evercore Partners 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 Evercore Partners 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 Evercore Partners i.e., Evercore Partners and Golub Capital go up and down completely randomly.
Pair Corralation between Evercore Partners and Golub Capital
Considering the 90-day investment horizon Evercore Partners is expected to generate 4.24 times more return on investment than Golub Capital. However, Evercore Partners is 4.24 times more volatile than Golub Capital BDC. It trades about 0.24 of its potential returns per unit of risk. Golub Capital BDC is currently generating about -0.04 per unit of risk. If you would invest 26,135 in Evercore Partners on August 27, 2024 and sell it today you would earn a total of 5,240 from holding Evercore Partners or generate 20.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evercore Partners vs. Golub Capital BDC
Performance |
| Timeline |
| Evercore Partners |
| Golub Capital BDC |
Evercore Partners and Golub Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evercore Partners and Golub Capital
The main advantage of trading using opposite Evercore Partners and Golub Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evercore Partners 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.| Evercore Partners vs. PJT Partners | Evercore Partners vs. Moelis Co | Evercore Partners vs. Perella Weinberg Partners | Evercore Partners vs. Jefferies Financial Group |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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