Correlation Between Golub Capital and Groep Brussel
Can any of the company-specific risk be diversified away by investing in both Golub Capital and Groep Brussel 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 Groep Brussel 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 Groep Brussel Lambert, you can compare the effects of market volatilities on Golub Capital and Groep Brussel 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 Groep Brussel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golub Capital and Groep Brussel.
Diversification Opportunities for Golub Capital and Groep Brussel
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Golub and Groep is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Golub Capital BDC and Groep Brussel Lambert in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groep Brussel Lambert 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 Groep Brussel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groep Brussel Lambert has no effect on the direction of Golub Capital i.e., Golub Capital and Groep Brussel go up and down completely randomly.
Pair Corralation between Golub Capital and Groep Brussel
Given the investment horizon of 90 days Golub Capital BDC is expected to generate 0.17 times more return on investment than Groep Brussel. However, Golub Capital BDC is 5.85 times less risky than Groep Brussel. It trades about 0.05 of its potential returns per unit of risk. Groep Brussel Lambert is currently generating about -0.01 per unit of risk. If you would invest 1,491 in Golub Capital BDC on September 13, 2024 and sell it today you would earn a total of 12.00 from holding Golub Capital BDC or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golub Capital BDC vs. Groep Brussel Lambert
Performance |
| Timeline |
| Golub Capital BDC |
| Groep Brussel Lambert |
Golub Capital and Groep Brussel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golub Capital and Groep Brussel
The main advantage of trading using opposite Golub Capital and Groep Brussel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golub Capital position performs unexpectedly, Groep Brussel 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 Groep Brussel will offset losses from the drop in Groep Brussel'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 |
| Groep Brussel vs. Carlyle Secured Lending | Groep Brussel vs. Sixth Street Specialty | Groep Brussel vs. Golub Capital BDC | Groep Brussel vs. Fidus Investment Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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