Correlation Between Fidus Investment and Frequency Therapeutics
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Frequency Therapeutics 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 Frequency Therapeutics 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 Frequency Therapeutics, you can compare the effects of market volatilities on Fidus Investment and Frequency Therapeutics 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 Frequency Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Frequency Therapeutics.
Diversification Opportunities for Fidus Investment and Frequency Therapeutics
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidus and Frequency is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Frequency Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frequency Therapeutics 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 Frequency Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frequency Therapeutics has no effect on the direction of Fidus Investment i.e., Fidus Investment and Frequency Therapeutics go up and down completely randomly.
Pair Corralation between Fidus Investment and Frequency Therapeutics
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.23 times more return on investment than Frequency Therapeutics. However, Fidus Investment Corp is 4.44 times less risky than Frequency Therapeutics. It trades about 0.35 of its potential returns per unit of risk. Frequency Therapeutics is currently generating about -0.21 per unit of risk. If you would invest 2,131 in Fidus Investment Corp on November 3, 2024 and sell it today you would earn a total of 131.00 from holding Fidus Investment Corp or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Fidus Investment Corp vs. Frequency Therapeutics
Performance |
| Timeline |
| Fidus Investment Corp |
| Frequency Therapeutics |
Fidus Investment and Frequency Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Frequency Therapeutics
The main advantage of trading using opposite Fidus Investment and Frequency Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Frequency Therapeutics 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 Frequency Therapeutics will offset losses from the drop in Frequency Therapeutics' 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 |
| Frequency Therapeutics vs. Chemours Co | Frequency Therapeutics vs. Sable Offshore Corp | Frequency Therapeutics vs. Energold Drilling Corp | Frequency Therapeutics vs. Eastman Chemical |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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