Correlation Between Fidus Investment and JV SPAC
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and JV SPAC 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 JV SPAC 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 JV SPAC Acquisition, you can compare the effects of market volatilities on Fidus Investment and JV SPAC 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 JV SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and JV SPAC.
Diversification Opportunities for Fidus Investment and JV SPAC
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidus and JVSA is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and JV SPAC Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JV SPAC Acquisition 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 JV SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JV SPAC Acquisition has no effect on the direction of Fidus Investment i.e., Fidus Investment and JV SPAC go up and down completely randomly.
Pair Corralation between Fidus Investment and JV SPAC
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 22.37 times more return on investment than JV SPAC. However, Fidus Investment is 22.37 times more volatile than JV SPAC Acquisition. It trades about 0.57 of its potential returns per unit of risk. JV SPAC Acquisition is currently generating about 0.41 per unit of risk. If you would invest 1,920 in Fidus Investment Corp on September 4, 2024 and sell it today you would earn a total of 188.00 from holding Fidus Investment Corp or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Fidus Investment Corp vs. JV SPAC Acquisition
Performance |
| Timeline |
| Fidus Investment Corp |
| JV SPAC Acquisition |
Fidus Investment and JV SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and JV SPAC
The main advantage of trading using opposite Fidus Investment and JV SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, JV SPAC 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 JV SPAC will offset losses from the drop in JV SPAC'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 |
| JV SPAC vs. Voyager Acquisition Corp | JV SPAC vs. YHN Acquisition I | JV SPAC vs. CO2 Energy Transition | JV SPAC vs. Vine Hill 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stocks Directory Find actively traded stocks across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |