Correlation Between Fidus Investment and Carters
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Carters 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 Carters 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 Carters, you can compare the effects of market volatilities on Fidus Investment and Carters 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 Carters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Carters.
Diversification Opportunities for Fidus Investment and Carters
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidus and Carters is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Carters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carters 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 Carters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carters has no effect on the direction of Fidus Investment i.e., Fidus Investment and Carters go up and down completely randomly.
Pair Corralation between Fidus Investment and Carters
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.52 times more return on investment than Carters. However, Fidus Investment Corp is 1.92 times less risky than Carters. It trades about 0.08 of its potential returns per unit of risk. Carters is currently generating about -0.02 per unit of risk. If you would invest 2,045 in Fidus Investment Corp on September 25, 2024 and sell it today you would earn a total of 30.00 from holding Fidus Investment Corp or generate 1.47% 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. Carters
Performance |
Timeline |
Fidus Investment Corp |
Carters |
Fidus Investment and Carters Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidus Investment and Carters
The main advantage of trading using opposite Fidus Investment and Carters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Carters 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 Carters will offset losses from the drop in Carters' long position.Fidus Investment vs. Aquagold International | Fidus Investment vs. Morningstar Unconstrained Allocation | Fidus Investment vs. Thrivent High Yield | Fidus Investment vs. Via Renewables |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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