Correlation Between Saratoga Investment and Partners
Can any of the company-specific risk be diversified away by investing in both Saratoga Investment and Partners 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 Saratoga Investment and Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saratoga Investment Corp and Partners Group, you can compare the effects of market volatilities on Saratoga Investment and Partners 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 Saratoga Investment with a short position of Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saratoga Investment and Partners.
Diversification Opportunities for Saratoga Investment and Partners
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saratoga and Partners is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Saratoga Investment Corp and Partners Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partners Group and Saratoga Investment 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 Saratoga Investment Corp are associated (or correlated) with Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partners Group has no effect on the direction of Saratoga Investment i.e., Saratoga Investment and Partners go up and down completely randomly.
Pair Corralation between Saratoga Investment and Partners
Considering the 90-day investment horizon Saratoga Investment Corp is expected to generate 0.32 times more return on investment than Partners. However, Saratoga Investment Corp is 3.17 times less risky than Partners. It trades about 0.04 of its potential returns per unit of risk. Partners Group is currently generating about -0.09 per unit of risk. If you would invest 2,286 in Saratoga Investment Corp on January 24, 2024 and sell it today you would earn a total of 14.00 from holding Saratoga Investment Corp or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saratoga Investment Corp vs. Partners Group
Performance |
| Timeline |
| Saratoga Investment Corp |
| Partners Group |
Saratoga Investment and Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saratoga Investment and Partners
The main advantage of trading using opposite Saratoga Investment and Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saratoga Investment position performs unexpectedly, Partners 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 Partners will offset losses from the drop in Partners' long position.| Saratoga Investment vs. New Mountain Finance | Saratoga Investment vs. BlackRock TCP Capital | Saratoga Investment vs. Carlyle Secured Lending | Saratoga Investment vs. Sixth Street Specialty |
| Partners vs. 3i Group PLC | Partners vs. Ares Management LP | Partners vs. Carlyle Group | Partners vs. 3i Group plc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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