Correlation Between Fidus Investment and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and National CineMedia 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 National CineMedia 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 National CineMedia, you can compare the effects of market volatilities on Fidus Investment and National CineMedia 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 National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and National CineMedia.
Diversification Opportunities for Fidus Investment and National CineMedia
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidus and National is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia 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 National CineMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National CineMedia has no effect on the direction of Fidus Investment i.e., Fidus Investment and National CineMedia go up and down completely randomly.
Pair Corralation between Fidus Investment and National CineMedia
Given the investment horizon of 90 days Fidus Investment is expected to generate 2.41 times less return on investment than National CineMedia. But when comparing it to its historical volatility, Fidus Investment Corp is 4.03 times less risky than National CineMedia. It trades about 0.14 of its potential returns per unit of risk. National CineMedia is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 375.00 in National CineMedia on November 3, 2024 and sell it today you would earn a total of 284.00 from holding National CineMedia or generate 75.73% 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. National CineMedia
Performance |
| Timeline |
| Fidus Investment Corp |
| National CineMedia |
Fidus Investment and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and National CineMedia
The main advantage of trading using opposite Fidus Investment and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, National CineMedia 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 National CineMedia will offset losses from the drop in National CineMedia'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 |
| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Glory Star New | National CineMedia vs. Impact Fusion International |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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