Correlation Between Fidus Investment and NESNVX

Can any of the company-specific risk be diversified away by investing in both Fidus Investment and NESNVX 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 NESNVX 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 NESNVX 125 15 SEP 30, you can compare the effects of market volatilities on Fidus Investment and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and NESNVX.

Diversification Opportunities for Fidus Investment and NESNVX

0.55

Correlation Coefficient

Fidus Investment  NESNVX

Very weak diversification

The 3 months correlation between Fidus and NESNVX is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and NESNVX 125 15 SEP 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 125 15 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 125 15 has no effect on the direction of Fidus Investment i.e., Fidus Investment and NESNVX go up and down completely randomly.

Pair Corralation between Fidus Investment and NESNVX

Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.9 times more return on investment than NESNVX. However, Fidus Investment Corp is 1.11 times less risky than NESNVX. It trades about 0.07 of its potential returns per unit of risk. NESNVX 125 15 SEP 30 is currently generating about 0.0 per unit of risk. If you would invest  1,610  in Fidus Investment Corp on October 23, 2024 and sell it today you would earn a total of  560.00  from holding Fidus Investment Corp or generate 34.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	30.97%
Values	Daily Returns

Fidus Investment Corp  vs.  NESNVX 125 15 SEP 30

Fidus Investment Corp

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidus Investment Corp are ranked lower than 21 (%) 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.

NESNVX 125 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESNVX 125 15 SEP 30 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for NESNVX 125 15 SEP 30 investors.

Pair Trading with Fidus Investment and NESNVX

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

The idea behind Fidus Investment Corp and NESNVX 125 15 SEP 30 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.