Correlation Between Fidus Investment and Pinterest
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Pinterest 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 Pinterest 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 Pinterest, you can compare the effects of market volatilities on Fidus Investment and Pinterest 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 Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Pinterest.
Diversification Opportunities for Fidus Investment and Pinterest
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fidus and Pinterest is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest 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 Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of Fidus Investment i.e., Fidus Investment and Pinterest go up and down completely randomly.
Pair Corralation between Fidus Investment and Pinterest
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.3 times more return on investment than Pinterest. However, Fidus Investment Corp is 3.35 times less risky than Pinterest. It trades about 0.14 of its potential returns per unit of risk. Pinterest is currently generating about -0.02 per unit of risk. If you would invest 1,713 in Fidus Investment Corp on November 3, 2024 and sell it today you would earn a total of 548.00 from holding Fidus Investment Corp or generate 31.99% 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. Pinterest
Performance |
| Timeline |
| Fidus Investment Corp |
Fidus Investment and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Pinterest
The main advantage of trading using opposite Fidus Investment and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest'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 |
| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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