Correlation Between Fidus Investment and Coupang LLC
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Coupang LLC 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 Coupang LLC 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 Coupang LLC, you can compare the effects of market volatilities on Fidus Investment and Coupang LLC 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 Coupang LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Coupang LLC.
Diversification Opportunities for Fidus Investment and Coupang LLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidus and Coupang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Coupang LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang LLC 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 Coupang LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coupang LLC has no effect on the direction of Fidus Investment i.e., Fidus Investment and Coupang LLC go up and down completely randomly.
Pair Corralation between Fidus Investment and Coupang LLC
Given the investment horizon of 90 days Fidus Investment is expected to generate 1.75 times less return on investment than Coupang LLC. But when comparing it to its historical volatility, Fidus Investment Corp is 3.05 times less risky than Coupang LLC. It trades about 0.12 of its potential returns per unit of risk. Coupang LLC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,690 in Coupang LLC on August 29, 2024 and sell it today you would earn a total of 857.00 from holding Coupang LLC or generate 50.71% 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. Coupang LLC
Performance |
| Timeline |
| Fidus Investment Corp |
| Coupang LLC |
Fidus Investment and Coupang LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Coupang LLC
The main advantage of trading using opposite Fidus Investment and Coupang LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Coupang LLC 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 Coupang LLC will offset losses from the drop in Coupang LLC'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 |
| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |