Correlation Between Fidus Investment and Gap,
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Gap, 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 Gap, 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 The Gap,, you can compare the effects of market volatilities on Fidus Investment and Gap, 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 Gap,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Gap,.
Diversification Opportunities for Fidus Investment and Gap,
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidus and Gap, is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and The Gap, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gap, 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 Gap,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gap, has no effect on the direction of Fidus Investment i.e., Fidus Investment and Gap, go up and down completely randomly.
Pair Corralation between Fidus Investment and Gap,
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.29 times more return on investment than Gap,. However, Fidus Investment Corp is 3.48 times less risky than Gap,. It trades about 0.11 of its potential returns per unit of risk. The Gap, is currently generating about -0.07 per unit of risk. If you would invest 1,992 in Fidus Investment Corp on December 18, 2024 and sell it today you would earn a total of 124.00 from holding Fidus Investment Corp or generate 6.22% 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. The Gap,
Performance |
Timeline |
Fidus Investment Corp |
Gap, |
Fidus Investment and Gap, Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidus Investment and Gap,
The main advantage of trading using opposite Fidus Investment and Gap, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Gap, 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 Gap, will offset losses from the drop in Gap,'s 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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