Correlation Between Fidus Investment and Blackstone
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Blackstone 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 Blackstone 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 Blackstone Group, you can compare the effects of market volatilities on Fidus Investment and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Blackstone.
Diversification Opportunities for Fidus Investment and Blackstone
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidus and Blackstone is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Fidus Investment i.e., Fidus Investment and Blackstone go up and down completely randomly.
Pair Corralation between Fidus Investment and Blackstone
Given the investment horizon of 90 days Fidus Investment is expected to generate 3.14 times less return on investment than Blackstone. But when comparing it to its historical volatility, Fidus Investment Corp is 2.45 times less risky than Blackstone. It trades about 0.11 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 10,956 in Blackstone Group on August 26, 2024 and sell it today you would earn a total of 8,949 from holding Blackstone Group or generate 81.68% 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. Blackstone Group
Performance |
| Timeline |
| Fidus Investment Corp |
| Blackstone Group |
Fidus Investment and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Blackstone
The main advantage of trading using opposite Fidus Investment and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| Fidus Investment vs. PowerUp Acquisition Corp | Fidus Investment vs. Aurora Innovation | Fidus Investment vs. HUMANA INC | Fidus Investment vs. Aquagold International |
| Blackstone vs. PowerUp Acquisition Corp | Blackstone vs. Aurora Innovation | Blackstone vs. HUMANA INC | Blackstone vs. Aquagold International |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |