Correlation Between Fidus Investment and Shui On
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Shui On 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 Shui On 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 Shui On Land, you can compare the effects of market volatilities on Fidus Investment and Shui On 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 Shui On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Shui On.
Diversification Opportunities for Fidus Investment and Shui On
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fidus and Shui is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Shui On Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shui On Land 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 Shui On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shui On Land has no effect on the direction of Fidus Investment i.e., Fidus Investment and Shui On go up and down completely randomly.
Pair Corralation between Fidus Investment and Shui On
If you would invest 2,045 in Fidus Investment Corp on September 26, 2024 and sell it today you would earn a total of 30.00 from holding Fidus Investment Corp or generate 1.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Fidus Investment Corp vs. Shui On Land
Performance |
Timeline |
Fidus Investment Corp |
Shui On Land |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fidus Investment and Shui On Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidus Investment and Shui On
The main advantage of trading using opposite Fidus Investment and Shui On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Shui On 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 Shui On will offset losses from the drop in Shui On's long position.Fidus Investment vs. Aquagold International | Fidus Investment vs. Morningstar Unconstrained Allocation | Fidus Investment vs. Thrivent High Yield | Fidus Investment vs. Via Renewables |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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