Correlation Between US Global and Bain Capital
Can any of the company-specific risk be diversified away by investing in both US Global and Bain 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 US Global and Bain Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and Bain Capital Specialty, you can compare the effects of market volatilities on US Global and Bain 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 US Global with a short position of Bain Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Bain Capital.
Diversification Opportunities for US Global and Bain Capital
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GROW and Bain is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors and Bain Capital Specialty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bain Capital Specialty and US Global 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 US Global Investors are associated (or correlated) with Bain Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bain Capital Specialty has no effect on the direction of US Global i.e., US Global and Bain Capital go up and down completely randomly.
Pair Corralation between US Global and Bain Capital
Given the investment horizon of 90 days US Global Investors is expected to generate 1.61 times more return on investment than Bain Capital. However, US Global is 1.61 times more volatile than Bain Capital Specialty. It trades about 0.06 of its potential returns per unit of risk. Bain Capital Specialty is currently generating about 0.01 per unit of risk. If you would invest 245.00 in US Global Investors on August 27, 2024 and sell it today you would earn a total of 4.00 from holding US Global Investors or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Investors vs. Bain Capital Specialty
Performance |
| Timeline |
| US Global Investors |
| Bain Capital Specialty |
US Global and Bain Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Bain Capital
The main advantage of trading using opposite US Global and Bain Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, Bain 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 Bain Capital will offset losses from the drop in Bain Capital's long position.| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
| Bain Capital vs. BlackRock TCP Capital | Bain Capital vs. Triplepoint Venture Growth | Bain Capital vs. Sixth Street Specialty | Bain Capital vs. Golub Capital BDC |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |