Correlation Between Investcorp Credit and Great Elm
Can any of the company-specific risk be diversified away by investing in both Investcorp Credit and Great Elm 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 Great Elm 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 Great Elm Group, you can compare the effects of market volatilities on Investcorp Credit and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Credit and Great Elm.
Diversification Opportunities for Investcorp Credit and Great Elm
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Investcorp and Great is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Credit Management and Great Elm Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Group 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Group has no effect on the direction of Investcorp Credit i.e., Investcorp Credit and Great Elm go up and down completely randomly.
Pair Corralation between Investcorp Credit and Great Elm
Given the investment horizon of 90 days Investcorp Credit Management is expected to generate 1.09 times more return on investment than Great Elm. However, Investcorp Credit is 1.09 times more volatile than Great Elm Group. It trades about 0.11 of its potential returns per unit of risk. Great Elm Group is currently generating about -0.01 per unit of risk. If you would invest 285.00 in Investcorp Credit Management on November 1, 2024 and sell it today you would earn a total of 27.00 from holding Investcorp Credit Management or generate 9.47% 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. Great Elm Group
Performance |
| Timeline |
| Investcorp Credit |
| Great Elm Group |
Investcorp Credit and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investcorp Credit and Great Elm
The main advantage of trading using opposite Investcorp Credit and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investcorp Credit position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's 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 |
| Great Elm vs. Investcorp Credit Management | Great Elm vs. Monroe Capital Corp | Great Elm vs. Allianzgi Convertible Income | Great Elm vs. John Hancock Income |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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