Correlation Between WhiteHorse Finance and Golub Capital
Can any of the company-specific risk be diversified away by investing in both WhiteHorse Finance and Golub 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 Golub 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 Golub Capital BDC, you can compare the effects of market volatilities on WhiteHorse Finance and Golub 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 Golub Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteHorse Finance and Golub Capital.
Diversification Opportunities for WhiteHorse Finance and Golub Capital
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WhiteHorse and Golub is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding WhiteHorse Finance and Golub Capital BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golub Capital BDC 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 Golub Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golub Capital BDC has no effect on the direction of WhiteHorse Finance i.e., WhiteHorse Finance and Golub Capital go up and down completely randomly.
Pair Corralation between WhiteHorse Finance and Golub Capital
Considering the 90-day investment horizon WhiteHorse Finance is expected to generate 1.48 times more return on investment than Golub Capital. However, WhiteHorse Finance is 1.48 times more volatile than Golub Capital BDC. It trades about 0.16 of its potential returns per unit of risk. Golub Capital BDC is currently generating about 0.07 per unit of risk. If you would invest 1,012 in WhiteHorse Finance on December 1, 2024 and sell it today you would earn a total of 117.00 from holding WhiteHorse Finance or generate 11.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
WhiteHorse Finance vs. Golub Capital BDC
Performance |
Timeline |
WhiteHorse Finance |
Golub Capital BDC |
WhiteHorse Finance and Golub Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WhiteHorse Finance and Golub Capital
The main advantage of trading using opposite WhiteHorse Finance and Golub Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteHorse Finance position performs unexpectedly, Golub 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 Golub Capital will offset losses from the drop in Golub 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 |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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