Correlation Between Fidus Investment and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs BDC, you can compare the effects of market volatilities on Fidus Investment and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Goldman Sachs.
Diversification Opportunities for Fidus Investment and Goldman Sachs
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidus and Goldman is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Goldman Sachs BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs BDC 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs BDC has no effect on the direction of Fidus Investment i.e., Fidus Investment and Goldman Sachs go up and down completely randomly.
Pair Corralation between Fidus Investment and Goldman Sachs
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.72 times more return on investment than Goldman Sachs. However, Fidus Investment Corp is 1.4 times less risky than Goldman Sachs. It trades about 0.49 of its potential returns per unit of risk. Goldman Sachs BDC is currently generating about -0.12 per unit of risk. If you would invest 1,948 in Fidus Investment Corp on August 31, 2024 and sell it today you would earn a total of 181.00 from holding Fidus Investment Corp or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Goldman Sachs BDC
Performance |
| Timeline |
| Fidus Investment Corp |
| Goldman Sachs BDC |
Fidus Investment and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Goldman Sachs
The main advantage of trading using opposite Fidus Investment and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Fidus Investment vs. Ares Capital | Fidus Investment vs. Hercules Capital | Fidus Investment vs. Main Street Capital |
| Goldman Sachs vs. Carlyle Secured Lending | Goldman Sachs vs. Sixth Street Specialty | Goldman Sachs vs. Golub Capital BDC | Goldman Sachs vs. Fidus Investment 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |