Correlation Between Fidus Investment and BioAge Labs,

Can any of the company-specific risk be diversified away by investing in both Fidus Investment and BioAge Labs, 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 Fidus Investment and BioAge Labs, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fidus Investment Corp and BioAge Labs,, you can compare the effects of market volatilities on Fidus Investment and BioAge Labs, 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 Fidus Investment with a short position of BioAge Labs,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and BioAge Labs,.

Diversification Opportunities for Fidus Investment and BioAge Labs,

-0.56

Correlation Coefficient

Fidus Investment  BioAge Labs,

Excellent diversification

The 3 months correlation between Fidus and BioAge is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and BioAge Labs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAge Labs, and Fidus Investment 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 Fidus Investment Corp are associated (or correlated) with BioAge Labs,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioAge Labs, has no effect on the direction of Fidus Investment i.e., Fidus Investment and BioAge Labs, go up and down completely randomly.

Pair Corralation between Fidus Investment and BioAge Labs,

Given the investment horizon of 90 days Fidus Investment is expected to generate 13.6 times less return on investment than BioAge Labs,. But when comparing it to its historical volatility, Fidus Investment Corp is 8.51 times less risky than BioAge Labs,. It trades about 0.08 of its potential returns per unit of risk. BioAge Labs, is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  465.00  in BioAge Labs, on October 9, 2024 and sell it today you would earn a total of  74.00  from holding BioAge Labs, or generate 15.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Fidus Investment Corp  vs.  BioAge Labs,

Fidus Investment Corp

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidus Investment Corp are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Fidus Investment may actually be approaching a critical reversion point that can send shares even higher in February 2025.

BioAge Labs,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BioAge Labs, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Fidus Investment and BioAge Labs,

The main advantage of trading using opposite Fidus Investment and BioAge Labs, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, BioAge Labs, 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 BioAge Labs, will offset losses from the drop in BioAge Labs,'s long position.

The idea behind Fidus Investment Corp and BioAge Labs, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.