Correlation Between Fidus Investment and China Power
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and China Power 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 Power 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 Power Equipment, you can compare the effects of market volatilities on Fidus Investment and China Power 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 Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and China Power.
Diversification Opportunities for Fidus Investment and China Power
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 Power Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Power Equipment 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 Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Power Equipment has no effect on the direction of Fidus Investment i.e., Fidus Investment and China Power go up and down completely randomly.
Pair Corralation between Fidus Investment and China Power
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 | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. China Power Equipment
Performance |
| Timeline |
| Fidus Investment Corp |
| China Power Equipment |
Fidus Investment and China Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and China Power
The main advantage of trading using opposite Fidus Investment and China Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, China Power 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 Power will offset losses from the drop in China Power'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 |
| China Power vs. Cytta Corp | China Power vs. Mawson Infrastructure Group | China Power vs. World Technology Corp | China Power vs. Bagger Daves Burger |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |