Correlation Between P10 and SuRo Capital
Can any of the company-specific risk be diversified away by investing in both P10 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 P10 and SuRo Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between P10 Inc and SuRo Capital Corp, you can compare the effects of market volatilities on P10 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 P10 with a short position of SuRo Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of P10 and SuRo Capital.
Diversification Opportunities for P10 and SuRo Capital
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between P10 and SuRo is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding P10 Inc 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 P10 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 P10 Inc 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 P10 i.e., P10 and SuRo Capital go up and down completely randomly.
Pair Corralation between P10 and SuRo Capital
Allowing for the 90-day total investment horizon P10 Inc is expected to under-perform the SuRo Capital. But the stock apears to be less risky and, when comparing its historical volatility, P10 Inc is 1.86 times less risky than SuRo Capital. The stock trades about -0.03 of its potential returns per unit of risk. The SuRo Capital Corp is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 505.00 in SuRo Capital Corp on October 23, 2024 and sell it today you would earn a total of 129.00 from holding SuRo Capital Corp or generate 25.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
P10 Inc vs. SuRo Capital Corp
Performance |
| Timeline |
| P10 Inc |
| SuRo Capital Corp |
P10 and SuRo Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with P10 and SuRo Capital
The main advantage of trading using opposite P10 and SuRo Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if P10 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.| P10 vs. Federated Premier Municipal | P10 vs. Blackrock Muniyield | P10 vs. Diamond Hill Investment | P10 vs. NXG NextGen Infrastructure |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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