Correlation Between BlackRock TCP and Saratoga Investment
Can any of the company-specific risk be diversified away by investing in both BlackRock TCP and Saratoga Investment 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 BlackRock TCP and Saratoga Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock TCP Capital and Saratoga Investment Corp, you can compare the effects of market volatilities on BlackRock TCP and Saratoga Investment 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 BlackRock TCP with a short position of Saratoga Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock TCP and Saratoga Investment.
Diversification Opportunities for BlackRock TCP and Saratoga Investment
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BlackRock and Saratoga is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock TCP Capital and Saratoga Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saratoga Investment Corp and BlackRock TCP 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 BlackRock TCP Capital are associated (or correlated) with Saratoga Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saratoga Investment Corp has no effect on the direction of BlackRock TCP i.e., BlackRock TCP and Saratoga Investment go up and down completely randomly.
Pair Corralation between BlackRock TCP and Saratoga Investment
Given the investment horizon of 90 days BlackRock TCP Capital is expected to under-perform the Saratoga Investment. In addition to that, BlackRock TCP is 1.27 times more volatile than Saratoga Investment Corp. It trades about -0.03 of its total potential returns per unit of risk. Saratoga Investment Corp is currently generating about 0.03 per unit of volatility. If you would invest 2,370 in Saratoga Investment Corp on September 2, 2024 and sell it today you would earn a total of 199.00 from holding Saratoga Investment Corp or generate 8.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock TCP Capital vs. Saratoga Investment Corp
Performance |
| Timeline |
| BlackRock TCP Capital |
| Saratoga Investment Corp |
BlackRock TCP and Saratoga Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock TCP and Saratoga Investment
The main advantage of trading using opposite BlackRock TCP and Saratoga Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock TCP position performs unexpectedly, Saratoga Investment 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 Saratoga Investment will offset losses from the drop in Saratoga Investment's long position.| BlackRock TCP vs. Triplepoint Venture Growth | BlackRock TCP vs. Sixth Street Specialty | BlackRock TCP vs. Golub Capital BDC | BlackRock TCP vs. New Mountain Finance |
| Saratoga Investment vs. New Mountain Finance | Saratoga Investment vs. BlackRock TCP Capital | Saratoga Investment vs. Carlyle Secured Lending | Saratoga Investment vs. Sixth Street Specialty |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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