Correlation Between Fidus Investment and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Playtika Holding 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 Playtika Holding 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 Playtika Holding Corp, you can compare the effects of market volatilities on Fidus Investment and Playtika Holding 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 Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Playtika Holding.
Diversification Opportunities for Fidus Investment and Playtika Holding
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidus and Playtika is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp 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 Playtika Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtika Holding Corp has no effect on the direction of Fidus Investment i.e., Fidus Investment and Playtika Holding go up and down completely randomly.
Pair Corralation between Fidus Investment and Playtika Holding
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.47 times more return on investment than Playtika Holding. However, Fidus Investment Corp is 2.12 times less risky than Playtika Holding. It trades about 0.16 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about -0.16 per unit of risk. If you would invest 2,239 in Fidus Investment Corp on November 27, 2024 and sell it today you would earn a total of 50.00 from holding Fidus Investment Corp or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Playtika Holding Corp
Performance |
| Timeline |
| Fidus Investment Corp |
| Playtika Holding Corp |
Fidus Investment and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Playtika Holding
The main advantage of trading using opposite Fidus Investment and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Playtika Holding 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 Playtika Holding will offset losses from the drop in Playtika Holding'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 |
| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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