Correlation Between Investcorp Credit and WhiteHorse Finance
Can any of the company-specific risk be diversified away by investing in both Investcorp Credit 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 Investcorp Credit and WhiteHorse Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investcorp Credit Management and WhiteHorse Finance, you can compare the effects of market volatilities on Investcorp Credit 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 Investcorp Credit with a short position of WhiteHorse Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Credit and WhiteHorse Finance.
Diversification Opportunities for Investcorp Credit and WhiteHorse Finance
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Investcorp and WhiteHorse is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Credit Management and WhiteHorse Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WhiteHorse Finance and Investcorp Credit 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 Investcorp Credit Management 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 Investcorp Credit i.e., Investcorp Credit and WhiteHorse Finance go up and down completely randomly.
Pair Corralation between Investcorp Credit and WhiteHorse Finance
Given the investment horizon of 90 days Investcorp Credit Management is expected to generate 1.49 times more return on investment than WhiteHorse Finance. However, Investcorp Credit is 1.49 times more volatile than WhiteHorse Finance. It trades about 0.01 of its potential returns per unit of risk. WhiteHorse Finance is currently generating about -0.01 per unit of risk. If you would invest 303.00 in Investcorp Credit Management on November 9, 2024 and sell it today you would earn a total of 8.00 from holding Investcorp Credit Management or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investcorp Credit Management vs. WhiteHorse Finance
Performance |
| Timeline |
| Investcorp Credit |
| WhiteHorse Finance |
Investcorp Credit and WhiteHorse Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investcorp Credit and WhiteHorse Finance
The main advantage of trading using opposite Investcorp Credit and WhiteHorse Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investcorp Credit 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.| Investcorp Credit vs. Presidio Property Trust | Investcorp Credit vs. Great Elm Capital | Investcorp Credit vs. Portman Ridge Finance | Investcorp Credit vs. OFS Capital Corp |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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