Correlation Between Fidus Investment and Life Time
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Life Time 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 Life Time 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 Life Time Group, you can compare the effects of market volatilities on Fidus Investment and Life Time 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 Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Life Time.
Diversification Opportunities for Fidus Investment and Life Time
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fidus and Life is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group 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 Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of Fidus Investment i.e., Fidus Investment and Life Time go up and down completely randomly.
Pair Corralation between Fidus Investment and Life Time
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.47 times more return on investment than Life Time. However, Fidus Investment Corp is 2.14 times less risky than Life Time. It trades about 0.57 of its potential returns per unit of risk. Life Time Group is currently generating about 0.18 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Life Time Group
Performance |
| Timeline |
| Fidus Investment Corp |
| Life Time Group |
Fidus Investment and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Life Time
The main advantage of trading using opposite Fidus Investment and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time'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 |
| Life Time vs. Hyatt Hotels | Life Time vs. Smart Share Global | Life Time vs. Sweetgreen | Life Time vs. Wyndham Hotels Resorts |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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