Correlation Between Fidus Investment and Franklin Credit
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Franklin Credit 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 Franklin Credit 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 Franklin Credit Management, you can compare the effects of market volatilities on Fidus Investment and Franklin Credit 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 Franklin Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Franklin Credit.
Diversification Opportunities for Fidus Investment and Franklin Credit
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fidus and Franklin is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Franklin Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Credit Mana 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 Franklin Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Credit Mana has no effect on the direction of Fidus Investment i.e., Fidus Investment and Franklin Credit go up and down completely randomly.
Pair Corralation between Fidus Investment and Franklin Credit
Given the investment horizon of 90 days Fidus Investment is expected to generate 5.16 times less return on investment than Franklin Credit. But when comparing it to its historical volatility, Fidus Investment Corp is 12.9 times less risky than Franklin Credit. It trades about 0.08 of its potential returns per unit of risk. Franklin Credit Management is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Franklin Credit Management on September 2, 2024 and sell it today you would lose (19.00) from holding Franklin Credit Management or give up 63.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Franklin Credit Management
Performance |
| Timeline |
| Fidus Investment Corp |
| Franklin Credit Mana |
Fidus Investment and Franklin Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Franklin Credit
The main advantage of trading using opposite Fidus Investment and Franklin Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Franklin Credit 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 Franklin Credit will offset losses from the drop in Franklin Credit's long position.| Fidus Investment vs. Visa Class A | Fidus Investment vs. Diamond Hill Investment | Fidus Investment vs. Distoken Acquisition | Fidus Investment vs. Associated Capital Group |
| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
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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