Correlation Between BSIG Old and Golub Capital

Can any of the company-specific risk be diversified away by investing in both BSIG Old and Golub 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 BSIG Old and Golub Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BSIG Old and Golub Capital BDC, you can compare the effects of market volatilities on BSIG Old and Golub 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 BSIG Old with a short position of Golub Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of BSIG Old and Golub Capital.

Diversification Opportunities for BSIG Old and Golub Capital

0.0

Correlation Coefficient

BSIG Old  Golub Capital

Pay attention - limited upside

The 3 months correlation between BSIG and Golub is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BSIG Old and Golub Capital BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golub Capital BDC and BSIG Old 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 BSIG Old are associated (or correlated) with Golub Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golub Capital BDC has no effect on the direction of BSIG Old i.e., BSIG Old and Golub Capital go up and down completely randomly.

Pair Corralation between BSIG Old and Golub Capital

If you would invest (100.00) in BSIG Old on December 4, 2024 and sell it today you would earn a total of  100.00  from holding BSIG Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BSIG Old  vs.  Golub Capital BDC

BSIG Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days BSIG Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, BSIG Old is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Golub Capital BDC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Golub Capital BDC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Golub Capital is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with BSIG Old and Golub Capital

The main advantage of trading using opposite BSIG Old and Golub Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BSIG Old position performs unexpectedly, Golub 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 Golub Capital will offset losses from the drop in Golub Capital's long position.

The idea behind BSIG Old and Golub Capital BDC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .