Correlation Between WhiteHorse Finance and Guggenheim Strategic
Can any of the company-specific risk be diversified away by investing in both WhiteHorse Finance and Guggenheim Strategic 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 Guggenheim Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WhiteHorse Finance and Guggenheim Strategic Opportunities, you can compare the effects of market volatilities on WhiteHorse Finance and Guggenheim Strategic 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 Guggenheim Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteHorse Finance and Guggenheim Strategic.
Diversification Opportunities for WhiteHorse Finance and Guggenheim Strategic
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between WhiteHorse and Guggenheim is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding WhiteHorse Finance and Guggenheim Strategic Opportuni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Strategic 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 Guggenheim Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Strategic has no effect on the direction of WhiteHorse Finance i.e., WhiteHorse Finance and Guggenheim Strategic go up and down completely randomly.
Pair Corralation between WhiteHorse Finance and Guggenheim Strategic
Considering the 90-day investment horizon WhiteHorse Finance is expected to under-perform the Guggenheim Strategic. In addition to that, WhiteHorse Finance is 3.06 times more volatile than Guggenheim Strategic Opportunities. It trades about -0.39 of its total potential returns per unit of risk. Guggenheim Strategic Opportunities is currently generating about 0.14 per unit of volatility. If you would invest 1,559 in Guggenheim Strategic Opportunities on August 29, 2024 and sell it today you would earn a total of 21.00 from holding Guggenheim Strategic Opportunities or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WhiteHorse Finance vs. Guggenheim Strategic Opportuni
Performance |
| Timeline |
| WhiteHorse Finance |
| Guggenheim Strategic |
WhiteHorse Finance and Guggenheim Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteHorse Finance and Guggenheim Strategic
The main advantage of trading using opposite WhiteHorse Finance and Guggenheim Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteHorse Finance position performs unexpectedly, Guggenheim Strategic 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 Guggenheim Strategic will offset losses from the drop in Guggenheim Strategic'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 |
| Guggenheim Strategic vs. Eaton Vance National | Guggenheim Strategic vs. Invesco High Income | Guggenheim Strategic vs. Blackrock Muniholdings Ny | Guggenheim Strategic vs. Nuveen California Select |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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