Correlation Between WhiteHorse Finance and Great Elm
Can any of the company-specific risk be diversified away by investing in both WhiteHorse Finance and Great Elm 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 Great Elm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WhiteHorse Finance and Great Elm Capital, you can compare the effects of market volatilities on WhiteHorse Finance and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteHorse Finance and Great Elm.
Diversification Opportunities for WhiteHorse Finance and Great Elm
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WhiteHorse and Great is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding WhiteHorse Finance and Great Elm Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Capital 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Capital has no effect on the direction of WhiteHorse Finance i.e., WhiteHorse Finance and Great Elm go up and down completely randomly.
Pair Corralation between WhiteHorse Finance and Great Elm
Considering the 90-day investment horizon WhiteHorse Finance is expected to generate 0.62 times more return on investment than Great Elm. However, WhiteHorse Finance is 1.6 times less risky than Great Elm. It trades about -0.13 of its potential returns per unit of risk. Great Elm Capital is currently generating about -0.17 per unit of risk. If you would invest 830.00 in WhiteHorse Finance on August 2, 2025 and sell it today you would lose (117.00) from holding WhiteHorse Finance or give up 14.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WhiteHorse Finance vs. Great Elm Capital
Performance |
| Timeline |
| WhiteHorse Finance |
| Great Elm Capital |
WhiteHorse Finance and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteHorse Finance and Great Elm
The main advantage of trading using opposite WhiteHorse Finance and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteHorse Finance position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's long position.| WhiteHorse Finance vs. Monroe Capital Corp | WhiteHorse Finance vs. Arrowmark Financial Corp | WhiteHorse Finance vs. Noah Holdings | WhiteHorse Finance vs. Oxford Square Capital |
| Great Elm vs. OFS Capital Corp | Great Elm vs. Phenixfin | Great Elm vs. WisdomTree Japan Opportunities | Great Elm vs. Bluemount Holdings Limited |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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