Correlation Between Golub Capital and OFS Capital
Can any of the company-specific risk be diversified away by investing in both Golub Capital and OFS 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 Golub Capital and OFS Capital 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 OFS Capital Corp, you can compare the effects of market volatilities on Golub Capital and OFS 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 Golub Capital with a short position of OFS Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golub Capital and OFS Capital.
Diversification Opportunities for Golub Capital and OFS Capital
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Golub and OFS is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Golub Capital BDC and OFS Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFS Capital Corp 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 OFS Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFS Capital Corp has no effect on the direction of Golub Capital i.e., Golub Capital and OFS Capital go up and down completely randomly.
Pair Corralation between Golub Capital and OFS Capital
Given the investment horizon of 90 days Golub Capital BDC is expected to under-perform the OFS Capital. In addition to that, Golub Capital is 1.63 times more volatile than OFS Capital Corp. It trades about -0.07 of its total potential returns per unit of risk. OFS Capital Corp is currently generating about -0.08 per unit of volatility. If you would invest 813.00 in OFS Capital Corp on August 24, 2024 and sell it today you would lose (9.00) from holding OFS Capital Corp or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golub Capital BDC vs. OFS Capital Corp
Performance |
| Timeline |
| Golub Capital BDC |
| OFS Capital Corp |
Golub Capital and OFS Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golub Capital and OFS Capital
The main advantage of trading using opposite Golub Capital and OFS Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golub Capital position performs unexpectedly, OFS 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 OFS Capital will offset losses from the drop in OFS Capital'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 |
| OFS Capital vs. Invesco Advantage MIT | OFS Capital vs. Invesco Municipal Trust | OFS Capital vs. Invesco California Value | OFS Capital vs. Victory Capital Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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