Correlation Between Fidus Investment and Fairwood Holdings
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Fairwood Holdings 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 Fairwood Holdings 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 Fairwood Holdings Limited, you can compare the effects of market volatilities on Fidus Investment and Fairwood Holdings 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 Fairwood Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Fairwood Holdings.
Diversification Opportunities for Fidus Investment and Fairwood Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidus and Fairwood is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Fairwood Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fairwood Holdings 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 Fairwood Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fairwood Holdings has no effect on the direction of Fidus Investment i.e., Fidus Investment and Fairwood Holdings go up and down completely randomly.
Pair Corralation between Fidus Investment and Fairwood Holdings
If you would invest 1,715 in Fidus Investment Corp on September 12, 2024 and sell it today you would earn a total of 434.00 from holding Fidus Investment Corp or generate 25.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.28% |
| Values | Daily Returns |
Fidus Investment Corp vs. Fairwood Holdings Limited
Performance |
| Timeline |
| Fidus Investment Corp |
| Fairwood Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Fidus Investment and Fairwood Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Fairwood Holdings
The main advantage of trading using opposite Fidus Investment and Fairwood Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Fairwood Holdings 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 Fairwood Holdings will offset losses from the drop in Fairwood Holdings' long position.| Fidus Investment vs. Gladstone Investment | Fidus Investment vs. Horizon Technology Finance | Fidus Investment vs. Stellus Capital Investment | Fidus Investment vs. Prospect Capital |
| Fairwood Holdings vs. Meiwu Technology Co | Fairwood Holdings vs. Arrow Electronics | Fairwood Holdings vs. Independence Realty Trust | Fairwood Holdings vs. Inflection Point Acquisition |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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