Correlation Between Fidus Investment and Investcorp Credit
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Investcorp Credit 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 Investcorp Credit 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 Investcorp Credit Management, you can compare the effects of market volatilities on Fidus Investment and Investcorp Credit 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 Investcorp Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Investcorp Credit.
Diversification Opportunities for Fidus Investment and Investcorp Credit
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidus and Investcorp is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Investcorp Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investcorp Credit 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 Investcorp Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investcorp Credit has no effect on the direction of Fidus Investment i.e., Fidus Investment and Investcorp Credit go up and down completely randomly.
Pair Corralation between Fidus Investment and Investcorp Credit
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.38 times more return on investment than Investcorp Credit. However, Fidus Investment Corp is 2.61 times less risky than Investcorp Credit. It trades about 0.51 of its potential returns per unit of risk. Investcorp Credit Management is currently generating about 0.19 per unit of risk. If you would invest 1,950 in Fidus Investment Corp on September 1, 2024 and sell it today you would earn a total of 179.00 from holding Fidus Investment Corp or generate 9.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Investcorp Credit Management
Performance |
| Timeline |
| Fidus Investment Corp |
| Investcorp Credit |
Fidus Investment and Investcorp Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Investcorp Credit
The main advantage of trading using opposite Fidus Investment and Investcorp Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Investcorp Credit 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 Investcorp Credit will offset losses from the drop in Investcorp Credit'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 |
| Investcorp Credit vs. Presidio Property Trust | Investcorp Credit vs. Great Elm Capital | Investcorp Credit vs. Portman Ridge Finance | Investcorp Credit vs. OFS Capital 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |