Correlation Between Fidus Investment and Mind Technology
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Mind Technology 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 Mind Technology 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 Mind Technology, you can compare the effects of market volatilities on Fidus Investment and Mind Technology 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 Mind Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Mind Technology.
Diversification Opportunities for Fidus Investment and Mind Technology
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fidus and Mind is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Mind Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mind Technology 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 Mind Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mind Technology has no effect on the direction of Fidus Investment i.e., Fidus Investment and Mind Technology go up and down completely randomly.
Pair Corralation between Fidus Investment and Mind Technology
Given the investment horizon of 90 days Fidus Investment is expected to generate 1.12 times less return on investment than Mind Technology. But when comparing it to its historical volatility, Fidus Investment Corp is 2.29 times less risky than Mind Technology. It trades about 0.36 of its potential returns per unit of risk. Mind Technology is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 364.00 in Mind Technology on August 27, 2024 and sell it today you would earn a total of 26.00 from holding Mind Technology or generate 7.14% 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. Mind Technology
Performance |
| Timeline |
| Fidus Investment Corp |
| Mind Technology |
Fidus Investment and Mind Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Mind Technology
The main advantage of trading using opposite Fidus Investment and Mind Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Mind Technology 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 Mind Technology will offset losses from the drop in Mind Technology's long position.| Fidus Investment vs. PowerUp Acquisition Corp | Fidus Investment vs. Aurora Innovation | Fidus Investment vs. HUMANA INC | Fidus Investment vs. Aquagold International |
| Mind Technology vs. Spectris plc | Mind Technology vs. Electro Sensors | Mind Technology vs. Sono Tek Corp | Mind Technology vs. Vishay Precision 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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