Correlation Between Fidus Investment and RAYTHEON
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By analyzing existing cross correlation between Fidus Investment Corp and RAYTHEON TECHNOLOGIES PORATION, you can compare the effects of market volatilities on Fidus Investment and RAYTHEON 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 RAYTHEON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and RAYTHEON.
Diversification Opportunities for Fidus Investment and RAYTHEON
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidus and RAYTHEON is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and RAYTHEON TECHNOLOGIES PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RAYTHEON 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 RAYTHEON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RAYTHEON TECHNOLOGIES has no effect on the direction of Fidus Investment i.e., Fidus Investment and RAYTHEON go up and down completely randomly.
Pair Corralation between Fidus Investment and RAYTHEON
Given the investment horizon of 90 days Fidus Investment is expected to generate 121.68 times less return on investment than RAYTHEON. But when comparing it to its historical volatility, Fidus Investment Corp is 103.46 times less risky than RAYTHEON. It trades about 0.07 of its potential returns per unit of risk. RAYTHEON TECHNOLOGIES PORATION is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,660 in RAYTHEON TECHNOLOGIES PORATION on September 24, 2024 and sell it today you would earn a total of 49.00 from holding RAYTHEON TECHNOLOGIES PORATION or generate 0.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 88.76% |
Values | Daily Returns |
Fidus Investment Corp vs. RAYTHEON TECHNOLOGIES PORATION
Performance |
Timeline |
Fidus Investment Corp |
RAYTHEON TECHNOLOGIES |
Fidus Investment and RAYTHEON Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidus Investment and RAYTHEON
The main advantage of trading using opposite Fidus Investment and RAYTHEON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, RAYTHEON 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 RAYTHEON will offset losses from the drop in RAYTHEON'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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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