Correlation Between China Clean and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both China Clean 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 China Clean and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Clean Energy and Fidus Investment Corp, you can compare the effects of market volatilities on China Clean 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 China Clean with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Clean and Fidus Investment.
Diversification Opportunities for China Clean and Fidus Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Fidus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Clean Energy 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 China Clean 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 China Clean Energy 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 China Clean i.e., China Clean and Fidus Investment go up and down completely randomly.
Pair Corralation between China Clean and Fidus Investment
If you would invest 1,728 in Fidus Investment Corp on September 14, 2024 and sell it today you would earn a total of 411.50 from holding Fidus Investment Corp or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Clean Energy vs. Fidus Investment Corp
Performance |
| Timeline |
| China Clean Energy |
| Fidus Investment Corp |
China Clean and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Clean and Fidus Investment
The main advantage of trading using opposite China Clean and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Clean 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.| China Clean vs. Chemours Co | China Clean vs. International Flavors Fragrances | China Clean vs. Air Products and | China Clean vs. PPG Industries |
| Fidus Investment vs. Visa Class A | Fidus Investment vs. Diamond Hill Investment | Fidus Investment vs. Distoken Acquisition | Fidus Investment vs. AllianceBernstein Holding LP |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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