Correlation Between Fidus Investment and BCE
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and BCE 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 BCE 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 BCE Inc, you can compare the effects of market volatilities on Fidus Investment and BCE 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 BCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and BCE.
Diversification Opportunities for Fidus Investment and BCE
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidus and BCE is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and BCE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCE 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 BCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCE Inc has no effect on the direction of Fidus Investment i.e., Fidus Investment and BCE go up and down completely randomly.
Pair Corralation between Fidus Investment and BCE
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.65 times more return on investment than BCE. However, Fidus Investment Corp is 1.53 times less risky than BCE. It trades about 0.14 of its potential returns per unit of risk. BCE Inc is currently generating about -0.13 per unit of risk. If you would invest 1,713 in Fidus Investment Corp on November 3, 2024 and sell it today you would earn a total of 548.00 from holding Fidus Investment Corp or generate 31.99% 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. BCE Inc
Performance |
| Timeline |
| Fidus Investment Corp |
| BCE Inc |
Fidus Investment and BCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and BCE
The main advantage of trading using opposite Fidus Investment and BCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, BCE 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 BCE will offset losses from the drop in BCE'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 |
| BCE vs. Rogers Communications | BCE vs. America Movil SAB | BCE vs. Telus Corp | BCE vs. Telefonica Brasil SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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