Correlation Between Logan Ridge and Golub Capital
Can any of the company-specific risk be diversified away by investing in both Logan Ridge 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 Logan Ridge and Golub Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logan Ridge Finance and Golub Capital BDC, you can compare the effects of market volatilities on Logan Ridge 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 Logan Ridge with a short position of Golub Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logan Ridge and Golub Capital.
Diversification Opportunities for Logan Ridge and Golub Capital
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Logan and Golub is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Logan Ridge Finance 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 Logan Ridge 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 Logan Ridge Finance 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 Logan Ridge i.e., Logan Ridge and Golub Capital go up and down completely randomly.
Pair Corralation between Logan Ridge and Golub Capital
Given the investment horizon of 90 days Logan Ridge Finance is expected to generate 1.37 times more return on investment than Golub Capital. However, Logan Ridge is 1.37 times more volatile than Golub Capital BDC. It trades about 0.19 of its potential returns per unit of risk. Golub Capital BDC is currently generating about -0.04 per unit of risk. If you would invest 2,376 in Logan Ridge Finance on August 27, 2024 and sell it today you would earn a total of 117.00 from holding Logan Ridge Finance or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logan Ridge Finance vs. Golub Capital BDC
Performance |
| Timeline |
| Logan Ridge Finance |
| Golub Capital BDC |
Logan Ridge and Golub Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logan Ridge and Golub Capital
The main advantage of trading using opposite Logan Ridge and Golub Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logan Ridge 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.| Logan Ridge vs. PowerUp Acquisition Corp | Logan Ridge vs. Aurora Innovation | Logan Ridge vs. HUMANA INC | Logan Ridge vs. Aquagold International |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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