Correlation Between Investcorp Credit and CBL Associates
Can any of the company-specific risk be diversified away by investing in both Investcorp Credit and CBL Associates 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 Investcorp Credit and CBL Associates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investcorp Credit Management and CBL Associates Properties, you can compare the effects of market volatilities on Investcorp Credit and CBL Associates 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 Investcorp Credit with a short position of CBL Associates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Credit and CBL Associates.
Diversification Opportunities for Investcorp Credit and CBL Associates
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Investcorp and CBL is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Credit Management and CBL Associates Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBL Associates Properties and Investcorp Credit 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 Investcorp Credit Management are associated (or correlated) with CBL Associates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBL Associates Properties has no effect on the direction of Investcorp Credit i.e., Investcorp Credit and CBL Associates go up and down completely randomly.
Pair Corralation between Investcorp Credit and CBL Associates
Given the investment horizon of 90 days Investcorp Credit is expected to generate 5.05 times less return on investment than CBL Associates. In addition to that, Investcorp Credit is 1.41 times more volatile than CBL Associates Properties. It trades about 0.01 of its total potential returns per unit of risk. CBL Associates Properties is currently generating about 0.1 per unit of volatility. If you would invest 2,196 in CBL Associates Properties on August 26, 2024 and sell it today you would earn a total of 782.00 from holding CBL Associates Properties or generate 35.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Investcorp Credit Management vs. CBL Associates Properties
Performance |
Timeline |
Investcorp Credit |
CBL Associates Properties |
Investcorp Credit and CBL Associates Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Investcorp Credit and CBL Associates
The main advantage of trading using opposite Investcorp Credit and CBL Associates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investcorp Credit position performs unexpectedly, CBL Associates 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 CBL Associates will offset losses from the drop in CBL Associates' long position.Investcorp Credit vs. Presidio Property Trust | Investcorp Credit vs. Great Elm Capital | Investcorp Credit vs. Portman Ridge Finance | Investcorp Credit vs. OFS Capital Corp |
CBL Associates vs. Investcorp Credit Management | CBL Associates vs. Medalist Diversified Reit | CBL Associates vs. Aquagold International | CBL Associates vs. Morningstar Unconstrained Allocation |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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