Correlation Between Fidus Investment and China Clean
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and China 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 China 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 China Clean Energy, you can compare the effects of market volatilities on Fidus Investment and China 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 China Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and China Clean.
Diversification Opportunities for Fidus Investment and China Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidus and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and China Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China 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 China Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Clean Energy has no effect on the direction of Fidus Investment i.e., Fidus Investment and China Clean go up and down completely randomly.
Pair Corralation between Fidus Investment and China Clean
If you would invest 1,728 in Fidus Investment Corp on September 14, 2024 and sell it today you would earn a total of 411.50 from holding Fidus Investment Corp or generate 23.81% 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. China Clean Energy
Performance |
| Timeline |
| Fidus Investment Corp |
| China Clean Energy |
Fidus Investment and China Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and China Clean
The main advantage of trading using opposite Fidus Investment and China Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, China 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 China Clean will offset losses from the drop in China Clean's long position.| Fidus Investment vs. Visa Class A | Fidus Investment vs. Diamond Hill Investment | Fidus Investment vs. Distoken Acquisition | Fidus Investment vs. AllianceBernstein Holding LP |
| China Clean vs. Chemours Co | China Clean vs. International Flavors Fragrances | China Clean vs. Air Products and | China Clean vs. PPG Industries |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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