Correlation Between WhiteHorse Finance and Yotta Acquisition
Can any of the company-specific risk be diversified away by investing in both WhiteHorse Finance and Yotta 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 Yotta 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 Yotta Acquisition, you can compare the effects of market volatilities on WhiteHorse Finance and Yotta 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 Yotta Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteHorse Finance and Yotta Acquisition.
Diversification Opportunities for WhiteHorse Finance and Yotta Acquisition
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WhiteHorse and Yotta is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding WhiteHorse Finance and Yotta Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yotta 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 Yotta Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yotta Acquisition has no effect on the direction of WhiteHorse Finance i.e., WhiteHorse Finance and Yotta Acquisition go up and down completely randomly.
Pair Corralation between WhiteHorse Finance and Yotta Acquisition
Considering the 90-day investment horizon WhiteHorse Finance is expected to generate 10.19 times less return on investment than Yotta Acquisition. But when comparing it to its historical volatility, WhiteHorse Finance is 27.27 times less risky than Yotta Acquisition. It trades about 0.23 of its potential returns per unit of risk. Yotta Acquisition is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5.80 in Yotta Acquisition on October 23, 2024 and sell it today you would lose (0.81) from holding Yotta Acquisition or give up 13.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 47.37% |
| Values | Daily Returns |
WhiteHorse Finance vs. Yotta Acquisition
Performance |
| Timeline |
| WhiteHorse Finance |
| Yotta Acquisition |
WhiteHorse Finance and Yotta Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteHorse Finance and Yotta Acquisition
The main advantage of trading using opposite WhiteHorse Finance and Yotta Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteHorse Finance position performs unexpectedly, Yotta 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 Yotta Acquisition will offset losses from the drop in Yotta 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 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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