Correlation Between Sixth Street and Triplepoint Venture
Can any of the company-specific risk be diversified away by investing in both Sixth Street and Triplepoint Venture 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 Triplepoint Venture 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 Triplepoint Venture Growth, you can compare the effects of market volatilities on Sixth Street and Triplepoint Venture 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 Triplepoint Venture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixth Street and Triplepoint Venture.
Diversification Opportunities for Sixth Street and Triplepoint Venture
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sixth and Triplepoint is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sixth Street Specialty and Triplepoint Venture Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triplepoint Venture 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 Triplepoint Venture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triplepoint Venture has no effect on the direction of Sixth Street i.e., Sixth Street and Triplepoint Venture go up and down completely randomly.
Pair Corralation between Sixth Street and Triplepoint Venture
Given the investment horizon of 90 days Sixth Street Specialty is expected to under-perform the Triplepoint Venture. But the stock apears to be less risky and, when comparing its historical volatility, Sixth Street Specialty is 2.97 times less risky than Triplepoint Venture. The stock trades about 0.0 of its potential returns per unit of risk. The Triplepoint Venture Growth is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 667.00 in Triplepoint Venture Growth on August 24, 2024 and sell it today you would earn a total of 137.00 from holding Triplepoint Venture Growth or generate 20.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixth Street Specialty vs. Triplepoint Venture Growth
Performance |
| Timeline |
| Sixth Street Specialty |
| Triplepoint Venture |
Sixth Street and Triplepoint Venture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixth Street and Triplepoint Venture
The main advantage of trading using opposite Sixth Street and Triplepoint Venture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixth Street position performs unexpectedly, Triplepoint Venture 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 Triplepoint Venture will offset losses from the drop in Triplepoint Venture'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 |
| Triplepoint Venture vs. BlackRock TCP Capital | Triplepoint Venture vs. Sixth Street Specialty | Triplepoint Venture vs. Golub Capital BDC | Triplepoint Venture vs. New Mountain Finance |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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