Correlation Between Fidus Investment and Abcellera Biologics
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Abcellera Biologics 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 Fidus Investment and Abcellera Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidus Investment Corp and Abcellera Biologics, you can compare the effects of market volatilities on Fidus Investment and Abcellera Biologics 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 Fidus Investment with a short position of Abcellera Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Abcellera Biologics.
Diversification Opportunities for Fidus Investment and Abcellera Biologics
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidus and Abcellera is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Abcellera Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abcellera Biologics and Fidus Investment 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 Fidus Investment Corp are associated (or correlated) with Abcellera Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abcellera Biologics has no effect on the direction of Fidus Investment i.e., Fidus Investment and Abcellera Biologics go up and down completely randomly.
Pair Corralation between Fidus Investment and Abcellera Biologics
Given the investment horizon of 90 days Fidus Investment is expected to generate 1.35 times less return on investment than Abcellera Biologics. But when comparing it to its historical volatility, Fidus Investment Corp is 5.56 times less risky than Abcellera Biologics. It trades about 0.21 of its potential returns per unit of risk. Abcellera Biologics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 268.00 in Abcellera Biologics on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Abcellera Biologics or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Abcellera Biologics
Performance |
| Timeline |
| Fidus Investment Corp |
| Abcellera Biologics |
Fidus Investment and Abcellera Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Abcellera Biologics
The main advantage of trading using opposite Fidus Investment and Abcellera Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Abcellera Biologics 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 Abcellera Biologics will offset losses from the drop in Abcellera Biologics' long position.| Fidus Investment vs. Visa Class A | Fidus Investment vs. Diamond Hill Investment | Fidus Investment vs. Distoken Acquisition | Fidus Investment vs. AllianceBernstein Holding LP |
| Abcellera Biologics vs. Hepion Pharmaceuticals | Abcellera Biologics vs. Krystal Biotech | Abcellera Biologics vs. CureVac NV | Abcellera Biologics vs. Vir Biotechnology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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