Correlation Between Fidus Investment and Cebu Air
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Cebu Air 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 Cebu Air 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 Cebu Air ADR, you can compare the effects of market volatilities on Fidus Investment and Cebu Air 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 Cebu Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Cebu Air.
Diversification Opportunities for Fidus Investment and Cebu Air
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidus and Cebu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Cebu Air ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cebu Air ADR 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 Cebu Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cebu Air ADR has no effect on the direction of Fidus Investment i.e., Fidus Investment and Cebu Air go up and down completely randomly.
Pair Corralation between Fidus Investment and Cebu Air
If you would invest 2,239 in Fidus Investment Corp on November 28, 2024 and sell it today you would earn a total of 36.00 from holding Fidus Investment Corp or generate 1.61% 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. Cebu Air ADR
Performance |
| Timeline |
| Fidus Investment Corp |
| Cebu Air ADR |
Fidus Investment and Cebu Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Cebu Air
The main advantage of trading using opposite Fidus Investment and Cebu Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Cebu Air 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 Cebu Air will offset losses from the drop in Cebu Air'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 |
| Cebu Air vs. National Beverage Corp | Cebu Air vs. Anheuser Busch Inbev | Cebu Air vs. Keurig Dr Pepper | Cebu Air vs. Pearson PLC ADR |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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