Correlation Between Rand Capital and Golub Capital
Can any of the company-specific risk be diversified away by investing in both Rand 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 Rand 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 Rand Capital Corp and Golub Capital BDC, you can compare the effects of market volatilities on Rand 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 Rand Capital with a short position of Golub Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rand Capital and Golub Capital.
Diversification Opportunities for Rand Capital and Golub Capital
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rand and Golub is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Rand 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 Rand 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 Rand 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 Rand Capital i.e., Rand Capital and Golub Capital go up and down completely randomly.
Pair Corralation between Rand Capital and Golub Capital
Given the investment horizon of 90 days Rand Capital Corp is expected to generate 0.93 times more return on investment than Golub Capital. However, Rand Capital Corp is 1.07 times less risky than Golub Capital. It trades about 0.13 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 1,613 in Rand Capital Corp on August 27, 2024 and sell it today you would earn a total of 36.00 from holding Rand Capital Corp or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Rand Capital Corp vs. Golub Capital BDC
Performance |
| Timeline |
| Rand Capital Corp |
| Golub Capital BDC |
Rand Capital and Golub Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rand Capital and Golub Capital
The main advantage of trading using opposite Rand Capital and Golub Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rand 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.| Rand Capital vs. PowerUp Acquisition Corp | Rand Capital vs. Aurora Innovation | Rand Capital vs. HUMANA INC | Rand Capital 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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