Correlation Between Stellus Capital and Binah Capital
Can any of the company-specific risk be diversified away by investing in both Stellus Capital and Binah 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 Stellus Capital and Binah Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stellus Capital Investment and Binah Capital Group,, you can compare the effects of market volatilities on Stellus Capital and Binah 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 Stellus Capital with a short position of Binah Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellus Capital and Binah Capital.
Diversification Opportunities for Stellus Capital and Binah Capital
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stellus and Binah is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Stellus Capital Investment and Binah Capital Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binah Capital Group, and Stellus 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 Stellus Capital Investment are associated (or correlated) with Binah Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binah Capital Group, has no effect on the direction of Stellus Capital i.e., Stellus Capital and Binah Capital go up and down completely randomly.
Pair Corralation between Stellus Capital and Binah Capital
Considering the 90-day investment horizon Stellus Capital is expected to generate 16.76 times less return on investment than Binah Capital. But when comparing it to its historical volatility, Stellus Capital Investment is 25.4 times less risky than Binah Capital. It trades about 0.21 of its potential returns per unit of risk. Binah Capital Group, is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 200.00 in Binah Capital Group, on September 3, 2024 and sell it today you would earn a total of 58.00 from holding Binah Capital Group, or generate 29.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stellus Capital Investment vs. Binah Capital Group,
Performance |
| Timeline |
| Stellus Capital Inve |
| Binah Capital Group, |
Stellus Capital and Binah Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellus Capital and Binah Capital
The main advantage of trading using opposite Stellus Capital and Binah Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellus Capital position performs unexpectedly, Binah 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 Binah Capital will offset losses from the drop in Binah Capital's long position.| Stellus Capital vs. PennantPark Floating Rate | Stellus Capital vs. Gladstone Capital | Stellus Capital vs. Gladstone Investment | Stellus Capital vs. Prospect Capital |
| Binah Capital vs. MI Homes | Binah Capital vs. U Haul Holding | Binah Capital vs. Alta Equipment Group | Binah Capital vs. HE Equipment Services |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |