Correlation Between Fidus Investment and Blue Owl
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Blue Owl 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 Blue Owl 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 Blue Owl Capital, you can compare the effects of market volatilities on Fidus Investment and Blue Owl 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 Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Blue Owl.
Diversification Opportunities for Fidus Investment and Blue Owl
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fidus and Blue is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Blue Owl Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Owl Capital 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 Blue Owl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Owl Capital has no effect on the direction of Fidus Investment i.e., Fidus Investment and Blue Owl go up and down completely randomly.
Pair Corralation between Fidus Investment and Blue Owl
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.85 times more return on investment than Blue Owl. However, Fidus Investment Corp is 1.18 times less risky than Blue Owl. It trades about 0.05 of its potential returns per unit of risk. Blue Owl Capital is currently generating about 0.03 per unit of risk. If you would invest 2,037 in Fidus Investment Corp on December 26, 2024 and sell it today you would earn a total of 56.10 from holding Fidus Investment Corp or generate 2.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fidus Investment Corp vs. Blue Owl Capital
Performance |
Timeline |
Fidus Investment Corp |
Blue Owl Capital |
Fidus Investment and Blue Owl Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidus Investment and Blue Owl
The main advantage of trading using opposite Fidus Investment and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Blue Owl 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 Blue Owl will offset losses from the drop in Blue Owl'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 |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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