Correlation Between ZEEKR Intelligent and Fidus Investment

Can any of the company-specific risk be diversified away by investing in both ZEEKR Intelligent and Fidus Investment 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 ZEEKR Intelligent and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ZEEKR Intelligent Technology and Fidus Investment Corp, you can compare the effects of market volatilities on ZEEKR Intelligent and Fidus Investment 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 ZEEKR Intelligent with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZEEKR Intelligent and Fidus Investment.

Diversification Opportunities for ZEEKR Intelligent and Fidus Investment

-0.6

Correlation Coefficient

ZEEKR Intelligent  Fidus Investment

Excellent diversification

The 3 months correlation between ZEEKR and Fidus is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology and Fidus Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidus Investment Corp and ZEEKR Intelligent 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 ZEEKR Intelligent Technology are associated (or correlated) with Fidus Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidus Investment Corp has no effect on the direction of ZEEKR Intelligent i.e., ZEEKR Intelligent and Fidus Investment go up and down completely randomly.

Pair Corralation between ZEEKR Intelligent and Fidus Investment

Allowing for the 90-day total investment horizon ZEEKR Intelligent Technology is expected to under-perform the Fidus Investment. In addition to that, ZEEKR Intelligent is 5.01 times more volatile than Fidus Investment Corp. It trades about -0.02 of its total potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.06 per unit of volatility. If you would invest  2,033  in Fidus Investment Corp on December 27, 2024 and sell it today you would earn a total of  63.00  from holding Fidus Investment Corp or generate 3.1% return on investment over 90 days.

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

ZEEKR Intelligent Technology  vs.  Fidus Investment Corp

ZEEKR Intelligent

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZEEKR Intelligent Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Fidus Investment Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Fidus Investment Corp are ranked lower than 4 (%) 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.

Pair Trading with ZEEKR Intelligent and Fidus Investment

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

The idea behind ZEEKR Intelligent Technology and Fidus Investment Corp 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.