Correlation Between Carlyle Secured and WhiteHorse Finance
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and WhiteHorse Finance 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 Carlyle Secured and WhiteHorse Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Secured Lending and WhiteHorse Finance, you can compare the effects of market volatilities on Carlyle Secured and WhiteHorse Finance 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 Carlyle Secured with a short position of WhiteHorse Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and WhiteHorse Finance.
Diversification Opportunities for Carlyle Secured and WhiteHorse Finance
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlyle and WhiteHorse is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and WhiteHorse Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WhiteHorse Finance and Carlyle Secured 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 Carlyle Secured Lending are associated (or correlated) with WhiteHorse Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WhiteHorse Finance has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and WhiteHorse Finance go up and down completely randomly.
Pair Corralation between Carlyle Secured and WhiteHorse Finance
Given the investment horizon of 90 days Carlyle Secured Lending is expected to generate 0.78 times more return on investment than WhiteHorse Finance. However, Carlyle Secured Lending is 1.28 times less risky than WhiteHorse Finance. It trades about -0.15 of its potential returns per unit of risk. WhiteHorse Finance is currently generating about -0.28 per unit of risk. If you would invest 1,731 in Carlyle Secured Lending on August 24, 2024 and sell it today you would lose (64.00) from holding Carlyle Secured Lending or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. WhiteHorse Finance
Performance |
| Timeline |
| Carlyle Secured Lending |
| WhiteHorse Finance |
Carlyle Secured and WhiteHorse Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and WhiteHorse Finance
The main advantage of trading using opposite Carlyle Secured and WhiteHorse Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, WhiteHorse Finance 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 WhiteHorse Finance will offset losses from the drop in WhiteHorse Finance's long position.| Carlyle Secured vs. Sixth Street Specialty | Carlyle Secured vs. Golub Capital BDC | Carlyle Secured vs. Fidus Investment Corp | Carlyle Secured vs. New Mountain Finance |
| WhiteHorse Finance vs. Monroe Capital Corp | WhiteHorse Finance vs. Portman Ridge Finance | WhiteHorse Finance vs. Fidus Investment Corp | WhiteHorse Finance vs. Diamond Hill 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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