Capital Competitors
| CSWC Stock | USD 23.08 0.07 0.30% |
Capital Southwest vs Prospect Capital Correlation
Very weak diversification
The correlation between Capital Southwest and PSEC is 0.54 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Capital Southwest and PSEC in the same portfolio, assuming nothing else is changed.
Moving against Capital Stock
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Capital Southwest's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Capital Southwest Competition Correlation Matrix
Typically, diversification allows investors to combine positions across different asset classes to reduce overall portfolio risk. Correlation between Capital Southwest and its competitors represents the degree of relationship between the price movements of corresponding stocks. A correlation of about +1.0 implies that the price of Capital and its corresponding peer move in tandem. A correlation of -1.0 means that prices move in opposite directions. A correlation of close to zero suggests that the price movements of assets are uncorrelated; in other words, the historical price movement of Capital Southwest does not affect the price movement of the other competitor.
High positive correlations
| High negative correlations
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Risk-Adjusted Indicators
There is a big difference between Capital Stock performing well and Capital Southwest Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Capital Southwest's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| OXLC | 1.19 | (0.02) | (0.02) | 0.07 | 1.59 | 2.51 | 9.22 | |||
| XFLT | 0.75 | (0.10) | 0.00 | (0.27) | 0.00 | 1.36 | 4.15 | |||
| CRF | 0.44 | 0.03 | (0.04) | 0.17 | 0.46 | 0.79 | 2.58 | |||
| CLM | 0.44 | 0.04 | (0.02) | 0.19 | 0.44 | 1.01 | 2.97 | |||
| CGBD | 0.98 | 0.04 | 0.01 | 0.14 | 1.24 | 2.23 | 5.52 | |||
| TSLX | 0.95 | (0.05) | (0.06) | 0.02 | 1.15 | 2.13 | 5.76 | |||
| HTGC | 0.83 | 0.09 | 0.04 | 0.27 | 0.96 | 1.86 | 4.48 | |||
| TCPC | 1.26 | 0.05 | 0.01 | 0.18 | 1.44 | 2.55 | 8.47 | |||
| TRIN | 0.93 | 0.20 | 0.12 | 0.42 | 1.06 | 2.45 | 6.66 | |||
| ARCC | 0.74 | 0.04 | 0.00 | 0.15 | 0.86 | 1.63 | 4.22 |
Capital Southwest Competitive Analysis
The better you understand Capital Southwest competitors, the better chance you have of utilizing it as a position in your portfolios. From an individual investor's perspective, Capital Southwest's competitive analysis can cover a whole range of metrics. Some of these will be more critical depending on who you are as an investor and how you react to market volatility. However, if you are locking your investment sandscape to a long-term horizon, comparing the fundamental indicator across Capital Southwest's competition over several years is one of the best ways to analyze its investment potential.| Better Than Average | Worse Than Peers | View Performance Chart |
Capital Southwest Competition Performance Charts
Five steps to successful analysis of Capital Southwest Competition
Capital Southwest's competitive analysis is the process of researching and evaluating its competitive landscape. It provides an understanding of the strengths, weaknesses, opportunities, and threats (SWOT) faced by Capital Southwest in relation to its competition. Capital Southwest's competition analysis typically involves several steps, including:- Identifying the key players in the market: This involves identifying the major competitors of Capital Southwest in the market, both direct and indirect, as well as new entrants and disruptive technologies.
- Assessing the strengths and weaknesses of each competitor: This involves evaluating each competitor's strengths and weaknesses in areas such as product offerings, market share, brand recognition, financial performance, and distribution channels.
- Understanding the competitive environment: This involves evaluating the regulatory environment, economic conditions, and other factors that may impact Capital Southwest's competitive landscape.
- Identifying opportunities and threats: This involves using the information gathered during the analysis to identify opportunities and threats to Capital Southwest, and developing a strategy to address them.
- Evaluating the competitive landscape: This involves understanding the competitive dynamics of the market, such as pricing, marketing, and distribution strategies, as well as analyzing the competitive advantage of each competitor.
Complement your Capital Southwest position
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Single Stock ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Single Stock ETFs theme has 433 constituents at this time.
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Check out Capital Southwest Correlation with its peers.For information on how to trade Capital Stock refer to our How to Trade Capital Stock guide.You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Is Stock space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Capital Southwest. If investors know Capital will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Capital Southwest listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Capital Southwest is measured differently than its book value, which is the value of Capital that is recorded on the company's balance sheet. Investors also form their own opinion of Capital Southwest's value that differs from its market value or its book value, called intrinsic value, which is Capital Southwest's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Capital Southwest's market value can be influenced by many factors that don't directly affect Capital Southwest's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Capital Southwest's value and its price as these two are different measures arrived at by different means. Investors typically determine if Capital Southwest is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Capital Southwest's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.