Correlation Between Golub Capital and Eagle Point
Can any of the company-specific risk be diversified away by investing in both Golub Capital and Eagle Point 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 Golub Capital and Eagle Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golub Capital BDC and Eagle Point Credit, you can compare the effects of market volatilities on Golub Capital and Eagle Point 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 Golub Capital with a short position of Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golub Capital and Eagle Point.
Diversification Opportunities for Golub Capital and Eagle Point
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golub and Eagle is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Golub Capital BDC and Eagle Point Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Credit and Golub Capital 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 Golub Capital BDC are associated (or correlated) with Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Credit has no effect on the direction of Golub Capital i.e., Golub Capital and Eagle Point go up and down completely randomly.
Pair Corralation between Golub Capital and Eagle Point
Given the investment horizon of 90 days Golub Capital BDC is expected to generate 0.96 times more return on investment than Eagle Point. However, Golub Capital BDC is 1.04 times less risky than Eagle Point. It trades about -0.04 of its potential returns per unit of risk. Eagle Point Credit is currently generating about -0.16 per unit of risk. If you would invest 1,551 in Golub Capital BDC on August 28, 2024 and sell it today you would lose (13.00) from holding Golub Capital BDC or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golub Capital BDC vs. Eagle Point Credit
Performance |
| Timeline |
| Golub Capital BDC |
| Eagle Point Credit |
Golub Capital and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golub Capital and Eagle Point
The main advantage of trading using opposite Golub Capital and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golub Capital position performs unexpectedly, Eagle Point 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 Eagle Point will offset losses from the drop in Eagle Point's long position.| Golub Capital vs. BlackRock TCP Capital | Golub Capital vs. Carlyle Secured Lending | Golub Capital vs. Triplepoint Venture Growth | Golub Capital vs. New Mountain Finance |
| Eagle Point vs. Cornerstone Strategic Return | Eagle Point vs. Cornerstone Strategic Value | Eagle Point vs. Oxford Square Capital | Eagle Point vs. Guggenheim Strategic Opportunities |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |