Correlation Between WhiteHorse Finance and Brookfield Corp
Can any of the company-specific risk be diversified away by investing in both WhiteHorse Finance and Brookfield Corp 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 WhiteHorse Finance and Brookfield Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WhiteHorse Finance and Brookfield Corp, you can compare the effects of market volatilities on WhiteHorse Finance and Brookfield Corp 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 WhiteHorse Finance with a short position of Brookfield Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteHorse Finance and Brookfield Corp.
Diversification Opportunities for WhiteHorse Finance and Brookfield Corp
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WhiteHorse and Brookfield is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding WhiteHorse Finance and Brookfield Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Corp and WhiteHorse Finance 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 WhiteHorse Finance are associated (or correlated) with Brookfield Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Corp has no effect on the direction of WhiteHorse Finance i.e., WhiteHorse Finance and Brookfield Corp go up and down completely randomly.
Pair Corralation between WhiteHorse Finance and Brookfield Corp
Considering the 90-day investment horizon WhiteHorse Finance is expected to generate 1.06 times less return on investment than Brookfield Corp. But when comparing it to its historical volatility, WhiteHorse Finance is 2.2 times less risky than Brookfield Corp. It trades about 0.33 of its potential returns per unit of risk. Brookfield Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 5,755 in Brookfield Corp on November 3, 2024 and sell it today you would earn a total of 365.00 from holding Brookfield Corp or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WhiteHorse Finance vs. Brookfield Corp
Performance |
| Timeline |
| WhiteHorse Finance |
| Brookfield Corp |
WhiteHorse Finance and Brookfield Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteHorse Finance and Brookfield Corp
The main advantage of trading using opposite WhiteHorse Finance and Brookfield Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteHorse Finance position performs unexpectedly, Brookfield Corp 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 Brookfield Corp will offset losses from the drop in Brookfield Corp's long position.| WhiteHorse Finance vs. Monroe Capital Corp | WhiteHorse Finance vs. Portman Ridge Finance | WhiteHorse Finance vs. Fidus Investment Corp | WhiteHorse Finance vs. Diamond Hill Investment |
| Brookfield Corp vs. KKR Co LP | Brookfield Corp vs. Blackstone Group | Brookfield Corp vs. T Rowe Price | Brookfield Corp vs. Apollo Global Management |
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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