Correlation Between WhiteHorse Finance and Consilium Acquisition
Can any of the company-specific risk be diversified away by investing in both WhiteHorse Finance and Consilium Acquisition 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 Consilium Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WhiteHorse Finance and Consilium Acquisition I, you can compare the effects of market volatilities on WhiteHorse Finance and Consilium Acquisition 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 Consilium Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteHorse Finance and Consilium Acquisition.
Diversification Opportunities for WhiteHorse Finance and Consilium Acquisition
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between WhiteHorse and Consilium is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding WhiteHorse Finance and Consilium Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consilium Acquisition 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 Consilium Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consilium Acquisition has no effect on the direction of WhiteHorse Finance i.e., WhiteHorse Finance and Consilium Acquisition go up and down completely randomly.
Pair Corralation between WhiteHorse Finance and Consilium Acquisition
Considering the 90-day investment horizon WhiteHorse Finance is expected to generate 1.81 times less return on investment than Consilium Acquisition. But when comparing it to its historical volatility, WhiteHorse Finance is 1.21 times less risky than Consilium Acquisition. It trades about 0.01 of its potential returns per unit of risk. Consilium Acquisition I is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,033 in Consilium Acquisition I on November 3, 2024 and sell it today you would earn a total of 69.00 from holding Consilium Acquisition I or generate 6.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
WhiteHorse Finance vs. Consilium Acquisition I
Performance |
| Timeline |
| WhiteHorse Finance |
| Consilium Acquisition |
WhiteHorse Finance and Consilium Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteHorse Finance and Consilium Acquisition
The main advantage of trading using opposite WhiteHorse Finance and Consilium Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteHorse Finance position performs unexpectedly, Consilium Acquisition 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 Consilium Acquisition will offset losses from the drop in Consilium Acquisition'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 |
| Consilium Acquisition vs. Sonos Inc | Consilium Acquisition vs. CTS Corporation | Consilium Acquisition vs. Vishay Precision Group | Consilium Acquisition vs. nLIGHT Inc |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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