Correlation Between Cebu Air and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Cebu Air 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 Cebu Air and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cebu Air ADR and Fidus Investment Corp, you can compare the effects of market volatilities on Cebu Air 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 Cebu Air with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cebu Air and Fidus Investment.
Diversification Opportunities for Cebu Air and Fidus Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cebu and Fidus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cebu Air ADR 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 Cebu Air 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 Cebu Air ADR 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 Cebu Air i.e., Cebu Air and Fidus Investment go up and down completely randomly.
Pair Corralation between Cebu Air and Fidus Investment
If you would invest 2,239 in Fidus Investment Corp on November 28, 2024 and sell it today you would earn a total of 36.00 from holding Fidus Investment Corp or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cebu Air ADR vs. Fidus Investment Corp
Performance |
| Timeline |
| Cebu Air ADR |
| Fidus Investment Corp |
Cebu Air and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cebu Air and Fidus Investment
The main advantage of trading using opposite Cebu Air and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cebu Air 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.| Cebu Air vs. National Beverage Corp | Cebu Air vs. Anheuser Busch Inbev | Cebu Air vs. Keurig Dr Pepper | Cebu Air vs. Pearson PLC ADR |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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