Correlation Between US Global and Golub Capital
Can any of the company-specific risk be diversified away by investing in both US Global and Golub 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 Golub 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 Golub Capital BDC, you can compare the effects of market volatilities on US Global and Golub 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 Golub Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Golub Capital.
Diversification Opportunities for US Global and Golub Capital
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GROW and Golub is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors and Golub Capital BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golub Capital BDC 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 Golub Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golub Capital BDC has no effect on the direction of US Global i.e., US Global and Golub Capital go up and down completely randomly.
Pair Corralation between US Global and Golub Capital
Given the investment horizon of 90 days US Global Investors is expected to under-perform the Golub Capital. In addition to that, US Global is 1.71 times more volatile than Golub Capital BDC. It trades about 0.0 of its total potential returns per unit of risk. Golub Capital BDC is currently generating about 0.08 per unit of volatility. If you would invest 1,076 in Golub Capital BDC on August 27, 2024 and sell it today you would earn a total of 454.00 from holding Golub Capital BDC or generate 42.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Investors vs. Golub Capital BDC
Performance |
| Timeline |
| US Global Investors |
| Golub Capital BDC |
US Global and Golub Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Golub Capital
The main advantage of trading using opposite US Global and Golub Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, Golub 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 Golub Capital will offset losses from the drop in Golub 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 |
| Golub Capital vs. BlackRock TCP Capital | Golub Capital vs. Carlyle Secured Lending | Golub Capital vs. Triplepoint Venture Growth | Golub Capital vs. New Mountain Finance |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |