Correlation Between Fidus Investment and BNY Mellon
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and BNY Mellon 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 BNY Mellon 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 BNY Mellon Strategic, you can compare the effects of market volatilities on Fidus Investment and BNY Mellon 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 BNY Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and BNY Mellon.
Diversification Opportunities for Fidus Investment and BNY Mellon
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidus and BNY is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and BNY Mellon Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNY Mellon Strategic 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 BNY Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNY Mellon Strategic has no effect on the direction of Fidus Investment i.e., Fidus Investment and BNY Mellon go up and down completely randomly.
Pair Corralation between Fidus Investment and BNY Mellon
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 1.17 times more return on investment than BNY Mellon. However, Fidus Investment is 1.17 times more volatile than BNY Mellon Strategic. It trades about 0.08 of its potential returns per unit of risk. BNY Mellon Strategic is currently generating about -0.23 per unit of risk. If you would invest 2,078 in Fidus Investment Corp on October 9, 2024 and sell it today you would earn a total of 29.00 from holding Fidus Investment Corp or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. BNY Mellon Strategic
Performance |
| Timeline |
| Fidus Investment Corp |
| BNY Mellon Strategic |
Fidus Investment and BNY Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and BNY Mellon
The main advantage of trading using opposite Fidus Investment and BNY Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, BNY Mellon 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 BNY Mellon will offset losses from the drop in BNY Mellon'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 |
| BNY Mellon vs. Blackrock Muniholdings Closed | BNY Mellon vs. DTF Tax Free | BNY Mellon vs. John Hancock Income | BNY Mellon vs. MFS Investment Grade |
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 Stocks Directory module to find actively traded stocks across global markets.
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