Correlation Between Fidus Investment and SVELEV

Can any of the company-specific risk be diversified away by investing in both Fidus Investment and SVELEV 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 SVELEV 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 SVELEV 25 10 FEB 41, you can compare the effects of market volatilities on Fidus Investment and SVELEV 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 SVELEV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and SVELEV.

Diversification Opportunities for Fidus Investment and SVELEV

-0.12

Correlation Coefficient

Fidus Investment  SVELEV

Good diversification

The 3 months correlation between Fidus and SVELEV is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and SVELEV 25 10 FEB 41 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVELEV 25 10 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 SVELEV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVELEV 25 10 has no effect on the direction of Fidus Investment i.e., Fidus Investment and SVELEV go up and down completely randomly.

Pair Corralation between Fidus Investment and SVELEV

Given the investment horizon of 90 days Fidus Investment is expected to generate 10.25 times less return on investment than SVELEV. But when comparing it to its historical volatility, Fidus Investment Corp is 1.42 times less risky than SVELEV. It trades about 0.02 of its potential returns per unit of risk. SVELEV 25 10 FEB 41 is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  6,456  in SVELEV 25 10 FEB 41 on December 28, 2024 and sell it today you would earn a total of  470.00  from holding SVELEV 25 10 FEB 41 or generate 7.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	62.3%
Values	Daily Returns

Fidus Investment Corp  vs.  SVELEV 25 10 FEB 41

Fidus Investment Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fidus Investment Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Fidus Investment is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

SVELEV 25 10

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SVELEV 25 10 FEB 41 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, SVELEV may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Fidus Investment and SVELEV

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

The idea behind Fidus Investment Corp and SVELEV 25 10 FEB 41 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.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.