Correlation Between Sixth Street and Groep Brussel
Can any of the company-specific risk be diversified away by investing in both Sixth Street and Groep Brussel 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 Sixth Street and Groep Brussel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixth Street Specialty and Groep Brussel Lambert, you can compare the effects of market volatilities on Sixth Street and Groep Brussel 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 Sixth Street with a short position of Groep Brussel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixth Street and Groep Brussel.
Diversification Opportunities for Sixth Street and Groep Brussel
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sixth and Groep is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sixth Street Specialty and Groep Brussel Lambert in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groep Brussel Lambert and Sixth Street 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 Sixth Street Specialty are associated (or correlated) with Groep Brussel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groep Brussel Lambert has no effect on the direction of Sixth Street i.e., Sixth Street and Groep Brussel go up and down completely randomly.
Pair Corralation between Sixth Street and Groep Brussel
Given the investment horizon of 90 days Sixth Street Specialty is expected to generate 0.23 times more return on investment than Groep Brussel. However, Sixth Street Specialty is 4.42 times less risky than Groep Brussel. It trades about 0.07 of its potential returns per unit of risk. Groep Brussel Lambert is currently generating about -0.05 per unit of risk. If you would invest 2,074 in Sixth Street Specialty on September 12, 2024 and sell it today you would earn a total of 65.00 from holding Sixth Street Specialty or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixth Street Specialty vs. Groep Brussel Lambert
Performance |
| Timeline |
| Sixth Street Specialty |
| Groep Brussel Lambert |
Sixth Street and Groep Brussel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixth Street and Groep Brussel
The main advantage of trading using opposite Sixth Street and Groep Brussel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixth Street position performs unexpectedly, Groep Brussel 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 Groep Brussel will offset losses from the drop in Groep Brussel's long position.| Sixth Street vs. New Mountain Finance | Sixth Street vs. Carlyle Secured Lending | Sixth Street vs. BlackRock TCP Capital | Sixth Street vs. Fidus Investment Corp |
| Groep Brussel vs. Carlyle Secured Lending | Groep Brussel vs. Sixth Street Specialty | Groep Brussel vs. Golub Capital BDC | Groep Brussel vs. Fidus Investment Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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