Correlation Between Fidus Investment and Gladstone Investment
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Gladstone Investment 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 Gladstone Investment 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 Gladstone Investment, you can compare the effects of market volatilities on Fidus Investment and Gladstone Investment 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 Gladstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Gladstone Investment.
Diversification Opportunities for Fidus Investment and Gladstone Investment
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidus and Gladstone is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Gladstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Investment 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 Gladstone Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Investment has no effect on the direction of Fidus Investment i.e., Fidus Investment and Gladstone Investment go up and down completely randomly.
Pair Corralation between Fidus Investment and Gladstone Investment
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.69 times more return on investment than Gladstone Investment. However, Fidus Investment Corp is 1.44 times less risky than Gladstone Investment. It trades about 0.34 of its potential returns per unit of risk. Gladstone Investment is currently generating about 0.02 per unit of risk. If you would invest 1,889 in Fidus Investment Corp on November 1, 2024 and sell it today you would earn a total of 353.00 from holding Fidus Investment Corp or generate 18.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Gladstone Investment
Performance |
| Timeline |
| Fidus Investment Corp |
| Gladstone Investment |
Fidus Investment and Gladstone Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Gladstone Investment
The main advantage of trading using opposite Fidus Investment and Gladstone Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Gladstone Investment 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 Gladstone Investment will offset losses from the drop in Gladstone Investment'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 |
| Gladstone Investment vs. PennantPark Floating Rate | Gladstone Investment vs. Horizon Technology Finance | Gladstone Investment vs. Stellus Capital Investment | Gladstone Investment vs. Prospect Capital |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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