Correlation Between Fidus Investment and LOBO EV

Can any of the company-specific risk be diversified away by investing in both Fidus Investment and LOBO EV 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 LOBO EV 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 LOBO EV TECHNOLOGIES, you can compare the effects of market volatilities on Fidus Investment and LOBO EV 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 LOBO EV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and LOBO EV.

Diversification Opportunities for Fidus Investment and LOBO EV

-0.67

Correlation Coefficient

Fidus Investment  LOBO EV

Excellent diversification

The 3 months correlation between Fidus and LOBO is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and LOBO EV TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOBO EV TECHNOLOGIES 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 LOBO EV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOBO EV TECHNOLOGIES has no effect on the direction of Fidus Investment i.e., Fidus Investment and LOBO EV go up and down completely randomly.

Pair Corralation between Fidus Investment and LOBO EV

Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.21 times more return on investment than LOBO EV. However, Fidus Investment Corp is 4.83 times less risky than LOBO EV. It trades about 0.08 of its potential returns per unit of risk. LOBO EV TECHNOLOGIES is currently generating about -0.11 per unit of risk. If you would invest  2,078  in Fidus Investment Corp on October 9, 2024 and sell it today you would earn a total of  29.00  from holding Fidus Investment Corp or generate 1.4% return on investment over 90 days.

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

Fidus Investment Corp  vs.  LOBO EV TECHNOLOGIES

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.

LOBO EV TECHNOLOGIES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LOBO EV TECHNOLOGIES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental drivers remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Fidus Investment and LOBO EV

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

The idea behind Fidus Investment Corp and LOBO EV TECHNOLOGIES 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.