Correlation Between WhiteHorse Finance and Stellus Capital
Can any of the company-specific risk be diversified away by investing in both WhiteHorse Finance and Stellus Capital 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 Stellus Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WhiteHorse Finance and Stellus Capital Investment, you can compare the effects of market volatilities on WhiteHorse Finance and Stellus Capital 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 Stellus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteHorse Finance and Stellus Capital.
Diversification Opportunities for WhiteHorse Finance and Stellus Capital
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WhiteHorse and Stellus is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding WhiteHorse Finance and Stellus Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellus Capital Inve 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 Stellus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellus Capital Inve has no effect on the direction of WhiteHorse Finance i.e., WhiteHorse Finance and Stellus Capital go up and down completely randomly.
Pair Corralation between WhiteHorse Finance and Stellus Capital
Considering the 90-day investment horizon WhiteHorse Finance is expected to generate 2.75 times less return on investment than Stellus Capital. In addition to that, WhiteHorse Finance is 1.17 times more volatile than Stellus Capital Investment. It trades about 0.02 of its total potential returns per unit of risk. Stellus Capital Investment is currently generating about 0.05 per unit of volatility. If you would invest 1,058 in Stellus Capital Investment on August 27, 2024 and sell it today you would earn a total of 323.00 from holding Stellus Capital Investment or generate 30.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WhiteHorse Finance vs. Stellus Capital Investment
Performance |
| Timeline |
| WhiteHorse Finance |
| Stellus Capital Inve |
WhiteHorse Finance and Stellus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteHorse Finance and Stellus Capital
The main advantage of trading using opposite WhiteHorse Finance and Stellus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteHorse Finance position performs unexpectedly, Stellus Capital 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 Stellus Capital will offset losses from the drop in Stellus Capital'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 |
| Stellus Capital vs. PowerUp Acquisition Corp | Stellus Capital vs. Aurora Innovation | Stellus Capital vs. HUMANA INC | Stellus Capital vs. Aquagold International |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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