Correlation Between Fidus Investment and Capital Clean
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Capital Clean 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 Capital Clean 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 Capital Clean Energy, you can compare the effects of market volatilities on Fidus Investment and Capital Clean 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 Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Capital Clean.
Diversification Opportunities for Fidus Investment and Capital Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidus and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy 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 Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of Fidus Investment i.e., Fidus Investment and Capital Clean go up and down completely randomly.
Pair Corralation between Fidus Investment and Capital Clean
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.55 times more return on investment than Capital Clean. However, Fidus Investment Corp is 1.82 times less risky than Capital Clean. It trades about 0.38 of its potential returns per unit of risk. Capital Clean Energy is currently generating about 0.05 per unit of risk. If you would invest 1,864 in Fidus Investment Corp on November 2, 2024 and sell it today you would earn a total of 379.00 from holding Fidus Investment Corp or generate 20.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Capital Clean Energy
Performance |
| Timeline |
| Fidus Investment Corp |
| Capital Clean Energy |
Fidus Investment and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Capital Clean
The main advantage of trading using opposite Fidus Investment and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean'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 |
| Capital Clean vs. Emerson Electric | Capital Clean vs. Sonos Inc | Capital Clean vs. Entravision Communications | Capital Clean vs. Griffon |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |