Correlation Between Carlyle Secured and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured 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 Carlyle Secured and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Secured Lending and Fidus Investment Corp, you can compare the effects of market volatilities on Carlyle Secured 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 Carlyle Secured with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Fidus Investment.
Diversification Opportunities for Carlyle Secured and Fidus Investment
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlyle and Fidus is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending 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 Carlyle Secured 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 Carlyle Secured Lending 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 Carlyle Secured i.e., Carlyle Secured and Fidus Investment go up and down completely randomly.
Pair Corralation between Carlyle Secured and Fidus Investment
Given the investment horizon of 90 days Carlyle Secured Lending is expected to under-perform the Fidus Investment. In addition to that, Carlyle Secured is 1.31 times more volatile than Fidus Investment Corp. It trades about -0.08 of its total potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.36 per unit of volatility. If you would invest 1,966 in Fidus Investment Corp on August 27, 2024 and sell it today you would earn a total of 131.00 from holding Fidus Investment Corp or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Fidus Investment Corp
Performance |
| Timeline |
| Carlyle Secured Lending |
| Fidus Investment Corp |
Carlyle Secured and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Fidus Investment
The main advantage of trading using opposite Carlyle Secured and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured 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.| Carlyle Secured vs. PowerUp Acquisition Corp | Carlyle Secured vs. Aurora Innovation | Carlyle Secured vs. HUMANA INC | Carlyle Secured vs. Aquagold International |
| Fidus Investment vs. PowerUp Acquisition Corp | Fidus Investment vs. Aurora Innovation | Fidus Investment vs. HUMANA INC | Fidus Investment vs. Aquagold International |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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