Correlation Between Stellus Capital and US Global
Can any of the company-specific risk be diversified away by investing in both Stellus Capital and US Global 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 US Global 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 US Global Investors, you can compare the effects of market volatilities on Stellus Capital and US Global 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 US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellus Capital and US Global.
Diversification Opportunities for Stellus Capital and US Global
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stellus and GROW is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Stellus Capital Investment and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors 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 US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of Stellus Capital i.e., Stellus Capital and US Global go up and down completely randomly.
Pair Corralation between Stellus Capital and US Global
Considering the 90-day investment horizon Stellus Capital Investment is expected to generate 0.62 times more return on investment than US Global. However, Stellus Capital Investment is 1.62 times less risky than US Global. It trades about 0.06 of its potential returns per unit of risk. US Global Investors is currently generating about -0.03 per unit of risk. If you would invest 1,311 in Stellus Capital Investment on August 24, 2024 and sell it today you would earn a total of 69.00 from holding Stellus Capital Investment or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stellus Capital Investment vs. US Global Investors
Performance |
| Timeline |
| Stellus Capital Inve |
| US Global Investors |
Stellus Capital and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellus Capital and US Global
The main advantage of trading using opposite Stellus Capital and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellus Capital position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.| Stellus Capital vs. PennantPark Floating Rate | Stellus Capital vs. Gladstone Capital | Stellus Capital vs. Gladstone Investment | Stellus Capital vs. Prospect Capital |
| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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