Correlation Between Triplepoint Venture and Crescent Capital

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

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

Diversification Opportunities for Triplepoint Venture and Crescent Capital

0.02

Correlation Coefficient

Triplepoint Venture  Crescent Capital

Significant diversification

The 3 months correlation between Triplepoint and Crescent is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Triplepoint Venture Growth 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 Triplepoint Venture 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 Triplepoint Venture Growth 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 Triplepoint Venture i.e., Triplepoint Venture and Crescent Capital go up and down completely randomly.

Pair Corralation between Triplepoint Venture and Crescent Capital

Given the investment horizon of 90 days Triplepoint Venture is expected to generate 5.02 times less return on investment than Crescent Capital. In addition to that, Triplepoint Venture is 1.78 times more volatile than Crescent Capital BDC. It trades about 0.01 of its total potential returns per unit of risk. Crescent Capital BDC is currently generating about 0.11 per unit of volatility. If you would invest  1,114  in Crescent Capital BDC on December 1, 2024 and sell it today you would earn a total of  727.00  from holding Crescent Capital BDC or generate 65.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Triplepoint Venture Growth  vs.  Crescent Capital BDC

Triplepoint Venture

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Triplepoint Venture Growth are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Triplepoint Venture is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Crescent Capital BDC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Crescent Capital BDC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Crescent Capital is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Triplepoint Venture and Crescent Capital

The main advantage of trading using opposite Triplepoint Venture and Crescent Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triplepoint Venture 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.

The idea behind Triplepoint Venture Growth and Crescent 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.