Correlation Between Fidus Investment and CONAGRA

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

Diversification Opportunities for Fidus Investment and CONAGRA

-0.4

Correlation Coefficient

Fidus Investment  CONAGRA

Very good diversification

The 3 months correlation between Fidus and CONAGRA is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and CONAGRA BRANDS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONAGRA BRANDS INC 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 CONAGRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONAGRA BRANDS INC has no effect on the direction of Fidus Investment i.e., Fidus Investment and CONAGRA go up and down completely randomly.

Pair Corralation between Fidus Investment and CONAGRA

Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.96 times more return on investment than CONAGRA. However, Fidus Investment Corp is 1.04 times less risky than CONAGRA. It trades about 0.24 of its potential returns per unit of risk. CONAGRA BRANDS INC is currently generating about -0.03 per unit of risk. If you would invest  1,916  in Fidus Investment Corp on October 20, 2024 and sell it today you would earn a total of  254.00  from holding Fidus Investment Corp or generate 13.26% return on investment over 90 days.

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

Fidus Investment Corp  vs.  CONAGRA BRANDS INC

Fidus Investment Corp

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidus Investment Corp are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Fidus Investment unveiled solid returns over the last few months and may actually be approaching a breakup point.

CONAGRA BRANDS INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CONAGRA BRANDS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CONAGRA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fidus Investment and CONAGRA

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

The idea behind Fidus Investment Corp and CONAGRA BRANDS INC 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.