Correlation Between Fidus Investment and GameStop Corp
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and GameStop Corp 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 GameStop Corp 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 GameStop Corp, you can compare the effects of market volatilities on Fidus Investment and GameStop Corp 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 GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and GameStop Corp.
Diversification Opportunities for Fidus Investment and GameStop Corp
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidus and GameStop is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop Corp 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 GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of Fidus Investment i.e., Fidus Investment and GameStop Corp go up and down completely randomly.
Pair Corralation between Fidus Investment and GameStop Corp
Given the investment horizon of 90 days Fidus Investment is expected to generate 3.2 times less return on investment than GameStop Corp. But when comparing it to its historical volatility, Fidus Investment Corp is 4.23 times less risky than GameStop Corp. It trades about 0.51 of its potential returns per unit of risk. GameStop Corp is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 2,218 in GameStop Corp on September 1, 2024 and sell it today you would earn a total of 687.00 from holding GameStop Corp or generate 30.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. GameStop Corp
Performance |
| Timeline |
| Fidus Investment Corp |
| GameStop Corp |
Fidus Investment and GameStop Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and GameStop Corp
The main advantage of trading using opposite Fidus Investment and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, GameStop Corp 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 GameStop Corp will offset losses from the drop in GameStop Corp'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 |
| GameStop Corp vs. RH | GameStop Corp vs. Dicks Sporting Goods | GameStop Corp vs. Best Buy Co | GameStop Corp vs. AutoZone |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |