Correlation Between Golub Capital and New Mountain
Can any of the company-specific risk be diversified away by investing in both Golub Capital and New Mountain 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 New Mountain 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 New Mountain Finance, you can compare the effects of market volatilities on Golub Capital and New Mountain 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 New Mountain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golub Capital and New Mountain.
Diversification Opportunities for Golub Capital and New Mountain
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Golub and New is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Golub Capital BDC and New Mountain Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Mountain Finance 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 New Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Mountain Finance has no effect on the direction of Golub Capital i.e., Golub Capital and New Mountain go up and down completely randomly.
Pair Corralation between Golub Capital and New Mountain
Given the investment horizon of 90 days Golub Capital BDC is expected to under-perform the New Mountain. But the stock apears to be less risky and, when comparing its historical volatility, Golub Capital BDC is 1.57 times less risky than New Mountain. The stock trades about -0.07 of its potential returns per unit of risk. The New Mountain Finance is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,144 in New Mountain Finance on August 27, 2024 and sell it today you would earn a total of 32.00 from holding New Mountain Finance or generate 2.8% 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. New Mountain Finance
Performance |
| Timeline |
| Golub Capital BDC |
| New Mountain Finance |
Golub Capital and New Mountain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golub Capital and New Mountain
The main advantage of trading using opposite Golub Capital and New Mountain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golub Capital position performs unexpectedly, New Mountain 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 New Mountain will offset losses from the drop in New Mountain'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 |
| New Mountain vs. PowerUp Acquisition Corp | New Mountain vs. Aurora Innovation | New Mountain vs. HUMANA INC | New Mountain vs. Aquagold International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |