Correlation Between International Biotechnology and Crescent Capital
Can any of the company-specific risk be diversified away by investing in both International Biotechnology 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 International Biotechnology and Crescent Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Biotechnology Trust and Crescent Capital BDC, you can compare the effects of market volatilities on International Biotechnology 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 International Biotechnology with a short position of Crescent Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Biotechnology and Crescent Capital.
Diversification Opportunities for International Biotechnology and Crescent Capital
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and Crescent is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding International Biotechnology Tr 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 International Biotechnology 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 International Biotechnology Trust 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 International Biotechnology i.e., International Biotechnology and Crescent Capital go up and down completely randomly.
Pair Corralation between International Biotechnology and Crescent Capital
Assuming the 90 days trading horizon International Biotechnology Trust is expected to generate 1.22 times more return on investment than Crescent Capital. However, International Biotechnology is 1.22 times more volatile than Crescent Capital BDC. It trades about 0.24 of its potential returns per unit of risk. Crescent Capital BDC is currently generating about -0.08 per unit of risk. If you would invest 67,200 in International Biotechnology Trust on August 25, 2025 and sell it today you would earn a total of 21,200 from holding International Biotechnology Trust or generate 31.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Biotechnology Tr vs. Crescent Capital BDC
Performance |
| Timeline |
| International Biotechnology |
| Crescent Capital BDC |
International Biotechnology and Crescent Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Biotechnology and Crescent Capital
The main advantage of trading using opposite International Biotechnology and Crescent Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Biotechnology 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.| International Biotechnology vs. Uniper SE | International Biotechnology vs. London Security Plc | International Biotechnology vs. Amicorp FS PLC | International Biotechnology vs. Ikigai Ventures |
| Crescent Capital vs. Gladstone Investment | Crescent Capital vs. Eagle Point Credit | Crescent Capital vs. MSCome Fund, | Crescent Capital vs. PennantPark Investment |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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