Correlation Between Coupang LLC and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Coupang LLC 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 Coupang LLC and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and Fidus Investment Corp, you can compare the effects of market volatilities on Coupang LLC 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 Coupang LLC with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and Fidus Investment.
Diversification Opportunities for Coupang LLC and Fidus Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coupang and Fidus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC 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 Coupang LLC 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 Coupang LLC 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 Coupang LLC i.e., Coupang LLC and Fidus Investment go up and down completely randomly.
Pair Corralation between Coupang LLC and Fidus Investment
Given the investment horizon of 90 days Coupang LLC is expected to generate 3.05 times more return on investment than Fidus Investment. However, Coupang LLC is 3.05 times more volatile than Fidus Investment Corp. It trades about 0.07 of its potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.12 per unit of risk. If you would invest 1,690 in Coupang LLC on August 29, 2024 and sell it today you would earn a total of 857.00 from holding Coupang LLC or generate 50.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coupang LLC vs. Fidus Investment Corp
Performance |
| Timeline |
| Coupang LLC |
| Fidus Investment Corp |
Coupang LLC and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and Fidus Investment
The main advantage of trading using opposite Coupang LLC and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC 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.| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
| 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 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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