Correlation Between Investcorp Credit and SuRo Capital
Can any of the company-specific risk be diversified away by investing in both Investcorp Credit and SuRo 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 Investcorp Credit and SuRo Capital 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 SuRo Capital Corp, you can compare the effects of market volatilities on Investcorp Credit and SuRo 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 Investcorp Credit with a short position of SuRo Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Credit and SuRo Capital.
Diversification Opportunities for Investcorp Credit and SuRo Capital
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Investcorp and SuRo is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Credit Management and SuRo Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SuRo Capital Corp 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 SuRo Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SuRo Capital Corp has no effect on the direction of Investcorp Credit i.e., Investcorp Credit and SuRo Capital go up and down completely randomly.
Pair Corralation between Investcorp Credit and SuRo Capital
Given the investment horizon of 90 days Investcorp Credit is expected to generate 8.47 times less return on investment than SuRo Capital. But when comparing it to its historical volatility, Investcorp Credit Management is 1.99 times less risky than SuRo Capital. It trades about 0.01 of its potential returns per unit of risk. SuRo Capital Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 363.00 in SuRo Capital Corp on November 3, 2024 and sell it today you would earn a total of 168.00 from holding SuRo Capital Corp or generate 46.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investcorp Credit Management vs. SuRo Capital Corp
Performance |
| Timeline |
| Investcorp Credit |
| SuRo Capital Corp |
Investcorp Credit and SuRo Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investcorp Credit and SuRo Capital
The main advantage of trading using opposite Investcorp Credit and SuRo Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investcorp Credit position performs unexpectedly, SuRo 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 SuRo Capital will offset losses from the drop in SuRo Capital'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 |
| SuRo Capital vs. Blackrock Muniholdings Ca | SuRo Capital vs. Putnam Managed Municipal | SuRo Capital vs. Investcorp Credit Management | SuRo Capital vs. P10 Inc |
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
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world |