Correlation Between Fidus Investment and Atec
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Atec 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 Atec 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 Atec Inc, you can compare the effects of market volatilities on Fidus Investment and Atec 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 Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Atec.
Diversification Opportunities for Fidus Investment and Atec
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fidus and Atec is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Atec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec Inc 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 Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec Inc has no effect on the direction of Fidus Investment i.e., Fidus Investment and Atec go up and down completely randomly.
Pair Corralation between Fidus Investment and Atec
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 3.32 times more return on investment than Atec. However, Fidus Investment is 3.32 times more volatile than Atec Inc. It trades about 0.12 of its potential returns per unit of risk. Atec Inc is currently generating about 0.09 per unit of risk. If you would invest 1,910 in Fidus Investment Corp on September 1, 2024 and sell it today you would earn a total of 219.00 from holding Fidus Investment Corp or generate 11.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Fidus Investment Corp vs. Atec Inc
Performance |
| Timeline |
| Fidus Investment Corp |
| Atec Inc |
Fidus Investment and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Atec
The main advantage of trading using opposite Fidus Investment and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Atec 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 Atec will offset losses from the drop in Atec's long position.| Fidus Investment vs. Visa Class A | Fidus Investment vs. Diamond Hill Investment | Fidus Investment vs. Distoken Acquisition | Fidus Investment vs. Associated Capital Group |
| Atec vs. GEN Restaurant Group, | Atec vs. Yum Brands | Atec vs. The Cheesecake Factory | Atec vs. Doubledown Interactive Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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