Correlation Between Presidio Property and Crescent Capital
Can any of the company-specific risk be diversified away by investing in both Presidio Property and Crescent 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 Presidio Property and Crescent Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Presidio Property Trust and Crescent Capital BDC, you can compare the effects of market volatilities on Presidio Property and Crescent 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 Presidio Property with a short position of Crescent Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Presidio Property and Crescent Capital.
Diversification Opportunities for Presidio Property and Crescent Capital
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Presidio and Crescent is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Presidio Property Trust and Crescent Capital BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Capital BDC and Presidio Property 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 Presidio Property Trust are associated (or correlated) with Crescent Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent Capital BDC has no effect on the direction of Presidio Property i.e., Presidio Property and Crescent Capital go up and down completely randomly.
Pair Corralation between Presidio Property and Crescent Capital
Given the investment horizon of 90 days Presidio Property Trust is expected to under-perform the Crescent Capital. In addition to that, Presidio Property is 5.9 times more volatile than Crescent Capital BDC. It trades about -0.09 of its total potential returns per unit of risk. Crescent Capital BDC is currently generating about 0.08 per unit of volatility. If you would invest 1,929 in Crescent Capital BDC on November 4, 2024 and sell it today you would earn a total of 31.00 from holding Crescent Capital BDC or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Presidio Property Trust vs. Crescent Capital BDC
Performance |
| Timeline |
| Presidio Property Trust |
| Crescent Capital BDC |
Presidio Property and Crescent Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Presidio Property and Crescent Capital
The main advantage of trading using opposite Presidio Property and Crescent Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Presidio Property position performs unexpectedly, Crescent 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 Crescent Capital will offset losses from the drop in Crescent Capital's long position.| Presidio Property vs. Kennedy Wilson Holdings | Presidio Property vs. Belpointe PREP LLC | Presidio Property vs. Ucommune International | Presidio Property vs. Zillow Group |
| Crescent Capital vs. BlackRock TCP Capital | Crescent Capital vs. Triplepoint Venture Growth | Crescent Capital vs. Sixth Street Specialty | Crescent Capital vs. Golub Capital BDC |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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