Correlation Between Fidus Investment and ASA Gold
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and ASA Gold 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 ASA Gold 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 ASA Gold and, you can compare the effects of market volatilities on Fidus Investment and ASA Gold 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 ASA Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and ASA Gold.
Diversification Opportunities for Fidus Investment and ASA Gold
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidus and ASA is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and ASA Gold and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASA Gold 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 ASA Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASA Gold has no effect on the direction of Fidus Investment i.e., Fidus Investment and ASA Gold go up and down completely randomly.
Pair Corralation between Fidus Investment and ASA Gold
Given the investment horizon of 90 days Fidus Investment is expected to generate 2.27 times less return on investment than ASA Gold. But when comparing it to its historical volatility, Fidus Investment Corp is 2.36 times less risky than ASA Gold. It trades about 0.03 of its potential returns per unit of risk. ASA Gold and is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,017 in ASA Gold and on September 20, 2024 and sell it today you would earn a total of 11.00 from holding ASA Gold and or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. ASA Gold and
Performance |
| Timeline |
| Fidus Investment Corp |
| ASA Gold |
Fidus Investment and ASA Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and ASA Gold
The main advantage of trading using opposite Fidus Investment and ASA Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, ASA Gold 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 ASA Gold will offset losses from the drop in ASA Gold's long position.| Fidus Investment vs. Golub Capital BDC | Fidus Investment vs. BlackRock TCP Capital | Fidus Investment vs. Carlyle Secured Lending | Fidus Investment vs. Sixth Street Specialty |
| ASA Gold vs. AngloGold Ashanti plc | ASA Gold vs. Sprott Physical Gold | ASA Gold vs. Gold Fields Ltd | ASA Gold vs. Harmony Gold Mining |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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