Correlation Between Fidus Investment and Fidelis Insurance
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Fidelis Insurance 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 Fidelis Insurance 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 Fidelis Insurance Holdings, you can compare the effects of market volatilities on Fidus Investment and Fidelis Insurance 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 Fidelis Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Fidelis Insurance.
Diversification Opportunities for Fidus Investment and Fidelis Insurance
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidus and Fidelis is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Fidelis Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelis Insurance 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 Fidelis Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelis Insurance has no effect on the direction of Fidus Investment i.e., Fidus Investment and Fidelis Insurance go up and down completely randomly.
Pair Corralation between Fidus Investment and Fidelis Insurance
Given the investment horizon of 90 days Fidus Investment is expected to generate 2.97 times less return on investment than Fidelis Insurance. But when comparing it to its historical volatility, Fidus Investment Corp is 2.79 times less risky than Fidelis Insurance. It trades about 0.1 of its potential returns per unit of risk. Fidelis Insurance Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,189 in Fidelis Insurance Holdings on September 4, 2024 and sell it today you would earn a total of 835.00 from holding Fidelis Insurance Holdings or generate 70.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Fidelis Insurance Holdings
Performance |
| Timeline |
| Fidus Investment Corp |
| Fidelis Insurance |
Fidus Investment and Fidelis Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Fidelis Insurance
The main advantage of trading using opposite Fidus Investment and Fidelis Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Fidelis Insurance 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 Fidelis Insurance will offset losses from the drop in Fidelis Insurance'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 |
| Fidelis Insurance vs. Yuexiu Transport Infrastructure | Fidelis Insurance vs. Old Dominion Freight | Fidelis Insurance vs. Ihuman Inc | Fidelis Insurance vs. PVH Corp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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