Correlation Between Fidus Investment and Mattel
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Mattel 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 Mattel 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 Mattel Inc, you can compare the effects of market volatilities on Fidus Investment and Mattel 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 Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Mattel.
Diversification Opportunities for Fidus Investment and Mattel
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidus and Mattel is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc 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 Mattel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattel Inc has no effect on the direction of Fidus Investment i.e., Fidus Investment and Mattel go up and down completely randomly.
Pair Corralation between Fidus Investment and Mattel
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.38 times more return on investment than Mattel. However, Fidus Investment Corp is 2.6 times less risky than Mattel. It trades about 0.1 of its potential returns per unit of risk. Mattel Inc is currently generating about 0.01 per unit of risk. If you would invest 1,751 in Fidus Investment Corp on September 4, 2024 and sell it today you would earn a total of 357.00 from holding Fidus Investment Corp or generate 20.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Mattel Inc
Performance |
| Timeline |
| Fidus Investment Corp |
| Mattel Inc |
Fidus Investment and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Mattel
The main advantage of trading using opposite Fidus Investment and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Mattel 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 Mattel will offset losses from the drop in Mattel'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 |
| Mattel vs. Funko Inc | Mattel vs. JAKKS Pacific | Mattel vs. Madison Square Garden | Mattel vs. Life Time Group |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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