Correlation Between Fidus Investment and Grupo Aeroportuario
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Grupo Aeroportuario 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 Grupo Aeroportuario 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 Grupo Aeroportuario del, you can compare the effects of market volatilities on Fidus Investment and Grupo Aeroportuario 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 Grupo Aeroportuario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Grupo Aeroportuario.
Diversification Opportunities for Fidus Investment and Grupo Aeroportuario
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidus and Grupo is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Grupo Aeroportuario del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Aeroportuario del 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 Grupo Aeroportuario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Aeroportuario del has no effect on the direction of Fidus Investment i.e., Fidus Investment and Grupo Aeroportuario go up and down completely randomly.
Pair Corralation between Fidus Investment and Grupo Aeroportuario
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.59 times more return on investment than Grupo Aeroportuario. However, Fidus Investment Corp is 1.7 times less risky than Grupo Aeroportuario. It trades about 0.71 of its potential returns per unit of risk. Grupo Aeroportuario del is currently generating about -0.05 per unit of risk. If you would invest 1,920 in Fidus Investment Corp on September 3, 2024 and sell it today you would earn a total of 209.00 from holding Fidus Investment Corp or generate 10.89% 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. Grupo Aeroportuario del
Performance |
| Timeline |
| Fidus Investment Corp |
| Grupo Aeroportuario del |
Fidus Investment and Grupo Aeroportuario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Grupo Aeroportuario
The main advantage of trading using opposite Fidus Investment and Grupo Aeroportuario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Grupo Aeroportuario 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 Grupo Aeroportuario will offset losses from the drop in Grupo Aeroportuario's long position.| Fidus Investment vs. Federated Premier Municipal | Fidus Investment vs. Blackrock Muniyield | Fidus Investment vs. Federated Investors B | Fidus Investment vs. SEI Investments |
| Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. Corporacion America Airports | Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Flughafen Zrich AG |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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