Correlation Between Horizon Technology and Logan Ridge
Can any of the company-specific risk be diversified away by investing in both Horizon Technology and Logan Ridge 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 Logan Ridge 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 Logan Ridge Finance, you can compare the effects of market volatilities on Horizon Technology and Logan Ridge 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 Logan Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Technology and Logan Ridge.
Diversification Opportunities for Horizon Technology and Logan Ridge
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Horizon and Logan is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Technology Finance and Logan Ridge Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logan Ridge Finance 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 Logan Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logan Ridge Finance has no effect on the direction of Horizon Technology i.e., Horizon Technology and Logan Ridge go up and down completely randomly.
Pair Corralation between Horizon Technology and Logan Ridge
Given the investment horizon of 90 days Horizon Technology Finance is expected to generate 0.44 times more return on investment than Logan Ridge. However, Horizon Technology Finance is 2.28 times less risky than Logan Ridge. It trades about 0.19 of its potential returns per unit of risk. Logan Ridge Finance is currently generating about 0.02 per unit of risk. If you would invest 915.00 in Horizon Technology Finance on September 13, 2024 and sell it today you would earn a total of 23.00 from holding Horizon Technology Finance or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Horizon Technology Finance vs. Logan Ridge Finance
Performance |
| Timeline |
| Horizon Technology |
| Logan Ridge Finance |
Horizon Technology and Logan Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Technology and Logan Ridge
The main advantage of trading using opposite Horizon Technology and Logan Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Technology position performs unexpectedly, Logan Ridge 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 Logan Ridge will offset losses from the drop in Logan Ridge's long position.| Horizon Technology vs. Gladstone Capital | Horizon Technology vs. Gladstone Investment | Horizon Technology vs. Prospect Capital | Horizon Technology vs. Stellus Capital Investment |
| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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