Prospect Capital Correlations

PSEC Stock

USD 3.32 0.03 0.90%

The current 90-days correlation between Prospect Capital and PennantPark Floating Rate is -0.22 (i.e., Very good diversification). The correlation of Prospect Capital is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Prospect Capital Correlation With Market

Very good diversification

The correlation between Prospect Capital and DJI is -0.28 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Prospect Capital and DJI in the same portfolio, assuming nothing else is changed.

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Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Prospect Capital. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.

For information on how to trade Prospect Stock refer to our How to Trade Prospect Stock guide.

Moving against Prospect Stock

0.64	OPFI	OppFi Inc	Pair Corr
0.61	TPVG	Triplepoint Venture	Pair Corr
0.59	MAIN	Main Street Capital	Pair Corr
0.59	TSLX	Sixth Street Specialty	Pair Corr
0.55	GAIN	Gladstone Investment	Pair Corr
0.53	GS	Goldman Sachs Group Earnings Call Today	Pair Corr
0.53	C	Citigroup Aggressive Push	Pair Corr
0.52	AC	Associated Capital	Pair Corr
0.5	ALLY	Ally Financial Earnings Call This Week	Pair Corr
0.5	L	Loews Corp	Pair Corr
0.49	BK	Bank of New York Sell-off Trend	Pair Corr
0.48	AXP	American Express Earnings Call This Week	Pair Corr
0.45	HTGC	Hercules Capital	Pair Corr
0.44	CSWC	Capital Southwest	Pair Corr
0.43	COF	Capital One Financial Earnings Call This Week	Pair Corr
0.43	SCM	Stellus Capital Inve Normal Trading	Pair Corr
0.43	ARCC	Ares Capital	Pair Corr
0.42	GLAD	Gladstone Capital	Pair Corr
0.42	PFLT	PennantPark Floating Rate	Pair Corr
0.42	BN	Brookfield Corp	Pair Corr
0.39	AX	Axos Financial	Pair Corr
0.38	PYPL	PayPal Holdings	Pair Corr
0.37	DHIL	Diamond Hill Investment	Pair Corr
0.69	TD	Toronto Dominion Bank	Pair Corr
0.65	KB	KB Financial Group Earnings Call This Week	Pair Corr
0.62	IX	Orix Corp Ads	Pair Corr
0.57	CM	Canadian Imperial Bank	Pair Corr
0.57	RY	Royal Bank	Pair Corr
0.56	HG	Hamilton Insurance Group,	Pair Corr
0.51	MS	Morgan Stanley Earnings Call Today	Pair Corr
0.49	DB	Deutsche Bank AG	Pair Corr
0.45	CG	Carlyle Group Normal Trading	Pair Corr
0.45	SF	Stifel Financial Earnings Call This Week	Pair Corr
0.41	RF	Regions Financial Earnings Call This Week	Pair Corr

Related Correlations Analysis

	GLAD	HRZN	GAIN	SCM	PFLT	ARCC	HTGC	MAIN
GLAD		-0.18	0.85	0.91	0.93	0.98	0.9	0.91	GLAD
HRZN	-0.18		-0.35	0.01	-0.14	-0.17	0.0	-0.01	HRZN
GAIN	0.85	-0.35		0.72	0.79	0.84	0.73	0.74	GAIN
SCM	0.91	0.01	0.72		0.94	0.9	0.95	0.97	SCM
PFLT	0.93	-0.14	0.79	0.94		0.92	0.94	0.91	PFLT
ARCC	0.98	-0.17	0.84	0.9	0.92		0.89	0.9	ARCC
HTGC	0.9	0.0	0.73	0.95	0.94	0.89		0.94	HTGC
MAIN	0.91	-0.01	0.74	0.97	0.91	0.9	0.94		MAIN
	GLAD	HRZN	GAIN	SCM	PFLT	ARCC	HTGC	MAIN

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

ARCC	+ 0.98	GLAD
MAIN	+ 0.97	SCM
HTGC	+ 0.95	SCM
PFLT	+ 0.94	SCM
HTGC	+ 0.94	PFLT
MAIN	+ 0.94	HTGC

High negative correlations

GAIN	- 0.35	HRZN
HRZN	- 0.18	GLAD
ARCC	- 0.17	HRZN
PFLT	- 0.14	HRZN
MAIN	- 0.01	HRZN
HTGC	- 0.0	HRZN

Risk-Adjusted Indicators

There is a big difference between Prospect Stock performing well and Prospect Capital Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Prospect Capital's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
GLAD	1.02	0.44	0.17	(0.60)	1.09	(1.19)	2.24	(1.79)	11.34
HRZN	1.44	(0.02)	(0.02)	0.08	3.63	(1.26)	2.95	(2.78)	20.64
GAIN	0.94	0.13	0.07	0.35	0.78	(1.10)	2.06	(1.78)	6.35
SCM	0.95	0.25	0.13	0.51	1.27	(1.01)	2.06	(1.86)	5.69
PFLT	0.91	0.10	0.04	0.27	1.12	(0.99)	1.96	(1.78)	5.26
ARCC	0.91	0.40	0.12	(0.49)	1.05	(0.98)	2.26	(2.09)	15.22
HTGC	0.92	0.09	0.03	0.26	1.03	(1.06)	1.84	(1.81)	5.60
MAIN	0.99	0.21	0.15	0.40	0.96	(1.14)	2.26	(1.75)	4.93

Prospect Capital Corporate Management

Jonathan JD	Deputy Counsel	Profile
Bart JD	Managing Director	Profile
Jonathan Li	Deputy Counsel	Profile
David Belzer	Managing Director	Profile
Trisha Blackman	Head Administration	Profile
Al Faella	Chief Officer	Profile

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