Correlation Between Fidus Investment and C3is
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and C3is 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 C3is 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 C3is Inc, you can compare the effects of market volatilities on Fidus Investment and C3is 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 C3is. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and C3is.
Diversification Opportunities for Fidus Investment and C3is
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidus and C3is is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and C3is Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C3is 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 C3is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C3is Inc has no effect on the direction of Fidus Investment i.e., Fidus Investment and C3is go up and down completely randomly.
Pair Corralation between Fidus Investment and C3is
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.09 times more return on investment than C3is. However, Fidus Investment Corp is 11.62 times less risky than C3is. It trades about 0.48 of its potential returns per unit of risk. C3is Inc is currently generating about -0.1 per unit of risk. If you would invest 2,028 in Fidus Investment Corp on October 20, 2024 and sell it today you would earn a total of 142.00 from holding Fidus Investment Corp or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. C3is Inc
Performance |
| Timeline |
| Fidus Investment Corp |
| C3is Inc |
Fidus Investment and C3is Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and C3is
The main advantage of trading using opposite Fidus Investment and C3is positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, C3is 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 C3is will offset losses from the drop in C3is' 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 |
| C3is vs. Skechers USA | C3is vs. Envista Holdings Corp | C3is vs. Merit Medical Systems | C3is vs. Zoom Video Communications |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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