Correlation Between Chemours and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Chemours 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 Chemours and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and Fidus Investment Corp, you can compare the effects of market volatilities on Chemours 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 Chemours with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and Fidus Investment.
Diversification Opportunities for Chemours and Fidus Investment
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chemours and Fidus is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co 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 Chemours 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 Chemours Co 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 Chemours i.e., Chemours and Fidus Investment go up and down completely randomly.
Pair Corralation between Chemours and Fidus Investment
Allowing for the 90-day total investment horizon Chemours is expected to generate 1.33 times less return on investment than Fidus Investment. In addition to that, Chemours is 3.3 times more volatile than Fidus Investment Corp. It trades about 0.13 of its total potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.57 per unit of volatility. If you would invest 1,920 in Fidus Investment Corp on September 4, 2024 and sell it today you would earn a total of 188.00 from holding Fidus Investment Corp or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemours Co vs. Fidus Investment Corp
Performance |
| Timeline |
| Chemours |
| Fidus Investment Corp |
Chemours and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and Fidus Investment
The main advantage of trading using opposite Chemours and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours 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.| Chemours vs. International Flavors Fragrances | Chemours vs. Air Products and | Chemours vs. PPG Industries | Chemours vs. Linde plc Ordinary |
| Fidus Investment vs. Golub Capital BDC | Fidus Investment vs. BlackRock TCP Capital | Fidus Investment vs. Carlyle Secured Lending | Fidus Investment vs. Sixth Street Specialty |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |