Correlation Between Fidus Investment and Coursera
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Coursera 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 Coursera 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 Coursera, you can compare the effects of market volatilities on Fidus Investment and Coursera 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 Coursera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Coursera.
Diversification Opportunities for Fidus Investment and Coursera
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidus and Coursera is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Coursera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coursera 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 Coursera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coursera has no effect on the direction of Fidus Investment i.e., Fidus Investment and Coursera go up and down completely randomly.
Pair Corralation between Fidus Investment and Coursera
Given the investment horizon of 90 days Fidus Investment is expected to generate 1.96 times less return on investment than Coursera. But when comparing it to its historical volatility, Fidus Investment Corp is 3.7 times less risky than Coursera. It trades about 0.43 of its potential returns per unit of risk. Coursera is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 710.00 in Coursera on August 30, 2024 and sell it today you would earn a total of 110.00 from holding Coursera or generate 15.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Coursera
Performance |
| Timeline |
| Fidus Investment Corp |
| Coursera |
Fidus Investment and Coursera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Coursera
The main advantage of trading using opposite Fidus Investment and Coursera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Coursera 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 Coursera will offset losses from the drop in Coursera'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 |
| Coursera vs. Laureate Education | Coursera vs. Strategic Education | Coursera vs. Grand Canyon Education | Coursera vs. American Public Education |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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