Correlation Between WhiteHorse Finance and Munivest Fund
Can any of the company-specific risk be diversified away by investing in both WhiteHorse Finance and Munivest Fund 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 Munivest Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WhiteHorse Finance and Munivest Fund, you can compare the effects of market volatilities on WhiteHorse Finance and Munivest Fund 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 Munivest Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteHorse Finance and Munivest Fund.
Diversification Opportunities for WhiteHorse Finance and Munivest Fund
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between WhiteHorse and Munivest is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding WhiteHorse Finance and Munivest Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munivest Fund 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 Munivest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munivest Fund has no effect on the direction of WhiteHorse Finance i.e., WhiteHorse Finance and Munivest Fund go up and down completely randomly.
Pair Corralation between WhiteHorse Finance and Munivest Fund
Considering the 90-day investment horizon WhiteHorse Finance is expected to under-perform the Munivest Fund. In addition to that, WhiteHorse Finance is 1.81 times more volatile than Munivest Fund. It trades about -0.35 of its total potential returns per unit of risk. Munivest Fund is currently generating about 0.19 per unit of volatility. If you would invest 728.00 in Munivest Fund on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Munivest Fund or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WhiteHorse Finance vs. Munivest Fund
Performance |
| Timeline |
| WhiteHorse Finance |
| Munivest Fund |
WhiteHorse Finance and Munivest Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteHorse Finance and Munivest Fund
The main advantage of trading using opposite WhiteHorse Finance and Munivest Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteHorse Finance position performs unexpectedly, Munivest Fund 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 Munivest Fund will offset losses from the drop in Munivest Fund'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 |
| Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniholdings Closed | Munivest Fund vs. Blackrock Muniholdings Quality |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |