Correlation Between Fidus Investment and Hamilton Insurance
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Hamilton Insurance 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 Hamilton Insurance 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 Hamilton Insurance Group,, you can compare the effects of market volatilities on Fidus Investment and Hamilton Insurance 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 Hamilton Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Hamilton Insurance.
Diversification Opportunities for Fidus Investment and Hamilton Insurance
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidus and Hamilton is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Hamilton Insurance Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Insurance Group, 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 Hamilton Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Insurance Group, has no effect on the direction of Fidus Investment i.e., Fidus Investment and Hamilton Insurance go up and down completely randomly.
Pair Corralation between Fidus Investment and Hamilton Insurance
Given the investment horizon of 90 days Fidus Investment is expected to generate 6.87 times less return on investment than Hamilton Insurance. But when comparing it to its historical volatility, Fidus Investment Corp is 1.83 times less risky than Hamilton Insurance. It trades about 0.03 of its potential returns per unit of risk. Hamilton Insurance Group, is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,890 in Hamilton Insurance Group, on December 28, 2024 and sell it today you would earn a total of 234.00 from holding Hamilton Insurance Group, or generate 12.38% 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. Hamilton Insurance Group,
Performance |
Timeline |
Fidus Investment Corp |
Hamilton Insurance Group, |
Fidus Investment and Hamilton Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidus Investment and Hamilton Insurance
The main advantage of trading using opposite Fidus Investment and Hamilton Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Hamilton Insurance 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 Hamilton Insurance will offset losses from the drop in Hamilton Insurance'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 |
Hamilton Insurance vs. Joint Stock | Hamilton Insurance vs. Air Products and | Hamilton Insurance vs. Luxfer Holdings PLC | Hamilton Insurance vs. Sapiens International |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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