Correlation Between Fidus Investment and Figs
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Figs 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 Figs 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 Figs Inc, you can compare the effects of market volatilities on Fidus Investment and Figs 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 Figs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Figs.
Diversification Opportunities for Fidus Investment and Figs
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidus and Figs is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Figs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figs Inc 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 Figs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Figs Inc has no effect on the direction of Fidus Investment i.e., Fidus Investment and Figs go up and down completely randomly.
Pair Corralation between Fidus Investment and Figs
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.26 times more return on investment than Figs. However, Fidus Investment Corp is 3.85 times less risky than Figs. It trades about 0.06 of its potential returns per unit of risk. Figs Inc is currently generating about -0.08 per unit of risk. If you would invest 2,033 in Fidus Investment Corp on December 27, 2024 and sell it today you would earn a total of 63.00 from holding Fidus Investment Corp or generate 3.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fidus Investment Corp vs. Figs Inc
Performance |
Timeline |
Fidus Investment Corp |
Figs Inc |
Fidus Investment and Figs Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidus Investment and Figs
The main advantage of trading using opposite Fidus Investment and Figs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Figs 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 Figs will offset losses from the drop in Figs' long position.Fidus Investment vs. Golub Capital BDC | Fidus Investment vs. BlackRock TCP Capital | Fidus Investment vs. Carlyle Secured Lending | Fidus Investment vs. Sixth Street Specialty |
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.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |