Correlation Between GCM Grosvenor and WhiteHorse Finance
Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor 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 GCM Grosvenor and WhiteHorse Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and WhiteHorse Finance, you can compare the effects of market volatilities on GCM Grosvenor 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 GCM Grosvenor with a short position of WhiteHorse Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and WhiteHorse Finance.
Diversification Opportunities for GCM Grosvenor and WhiteHorse Finance
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GCM and WhiteHorse is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor and WhiteHorse Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WhiteHorse Finance and GCM Grosvenor 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 GCM Grosvenor 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 GCM Grosvenor i.e., GCM Grosvenor and WhiteHorse Finance go up and down completely randomly.
Pair Corralation between GCM Grosvenor and WhiteHorse Finance
Assuming the 90 days horizon GCM Grosvenor is expected to generate 6.23 times more return on investment than WhiteHorse Finance. However, GCM Grosvenor is 6.23 times more volatile than WhiteHorse Finance. It trades about 0.54 of its potential returns per unit of risk. WhiteHorse Finance is currently generating about 0.31 per unit of risk. If you would invest 120.00 in GCM Grosvenor on November 2, 2024 and sell it today you would earn a total of 92.00 from holding GCM Grosvenor or generate 76.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GCM Grosvenor vs. WhiteHorse Finance
Performance |
| Timeline |
| GCM Grosvenor |
| WhiteHorse Finance |
GCM Grosvenor and WhiteHorse Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCM Grosvenor and WhiteHorse Finance
The main advantage of trading using opposite GCM Grosvenor and WhiteHorse Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor 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.| GCM Grosvenor vs. GCM Grosvenor | GCM Grosvenor vs. Glory Star New | GCM Grosvenor vs. Eos Energy Enterprises |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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