Correlation Between Horizon Technology and Crescent Capital
Can any of the company-specific risk be diversified away by investing in both Horizon Technology 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 Horizon Technology and Crescent Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horizon Technology Finance and Crescent Capital BDC, you can compare the effects of market volatilities on Horizon Technology 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 Horizon Technology with a short position of Crescent Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Technology and Crescent Capital.
Diversification Opportunities for Horizon Technology and Crescent Capital
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Horizon and Crescent is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Technology Finance 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 Horizon Technology 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 Horizon Technology Finance 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 Horizon Technology i.e., Horizon Technology and Crescent Capital go up and down completely randomly.
Pair Corralation between Horizon Technology and Crescent Capital
Given the investment horizon of 90 days Horizon Technology Finance is expected to generate 0.74 times more return on investment than Crescent Capital. However, Horizon Technology Finance is 1.35 times less risky than Crescent Capital. It trades about 0.28 of its potential returns per unit of risk. Crescent Capital BDC is currently generating about 0.1 per unit of risk. If you would invest 900.00 in Horizon Technology Finance on November 3, 2024 and sell it today you would earn a total of 39.00 from holding Horizon Technology Finance or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Horizon Technology Finance vs. Crescent Capital BDC
Performance |
| Timeline |
| Horizon Technology |
| Crescent Capital BDC |
Horizon Technology and Crescent Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Technology and Crescent Capital
The main advantage of trading using opposite Horizon Technology and Crescent Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Technology 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.| Horizon Technology vs. Gladstone Capital | Horizon Technology vs. Gladstone Investment | Horizon Technology vs. Prospect Capital | Horizon Technology vs. Stellus Capital Investment |
| Crescent Capital vs. BlackRock TCP Capital | Crescent Capital vs. Triplepoint Venture Growth | Crescent Capital vs. Sixth Street Specialty | Crescent Capital vs. Golub Capital BDC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |