Correlation Between OFS Capital and Golub Capital
Can any of the company-specific risk be diversified away by investing in both OFS Capital 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 OFS Capital and Golub Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFS Capital Corp and Golub Capital BDC, you can compare the effects of market volatilities on OFS Capital 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 OFS Capital with a short position of Golub Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFS Capital and Golub Capital.
Diversification Opportunities for OFS Capital and Golub Capital
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OFS and Golub is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding OFS Capital Corp 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 OFS Capital 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 OFS Capital Corp 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 OFS Capital i.e., OFS Capital and Golub Capital go up and down completely randomly.
Pair Corralation between OFS Capital and Golub Capital
Considering the 90-day investment horizon OFS Capital Corp is expected to generate 0.65 times more return on investment than Golub Capital. However, OFS Capital Corp is 1.53 times less risky than Golub Capital. It trades about -0.03 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 815.00 in OFS Capital Corp on August 28, 2024 and sell it today you would lose (3.00) from holding OFS Capital Corp or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFS Capital Corp vs. Golub Capital BDC
Performance |
| Timeline |
| OFS Capital Corp |
| Golub Capital BDC |
OFS Capital and Golub Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFS Capital and Golub Capital
The main advantage of trading using opposite OFS Capital and Golub Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFS Capital 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.| OFS Capital vs. Stellus Capital Investment | OFS Capital vs. Fidus Investment Corp | OFS Capital vs. Monroe Capital Corp | OFS Capital vs. New Mountain Finance |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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