Correlation Between Fidus Investment and Sealed Air
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Sealed Air 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 Sealed Air 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 Sealed Air, you can compare the effects of market volatilities on Fidus Investment and Sealed Air 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 Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Sealed Air.
Diversification Opportunities for Fidus Investment and Sealed Air
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fidus and Sealed is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air 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 Sealed Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sealed Air has no effect on the direction of Fidus Investment i.e., Fidus Investment and Sealed Air go up and down completely randomly.
Pair Corralation between Fidus Investment and Sealed Air
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.49 times more return on investment than Sealed Air. However, Fidus Investment Corp is 2.03 times less risky than Sealed Air. It trades about 0.71 of its potential returns per unit of risk. Sealed Air is currently generating about 0.04 per unit of risk. If you would invest 1,920 in Fidus Investment Corp on September 3, 2024 and sell it today you would earn a total of 209.00 from holding Fidus Investment Corp or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Sealed Air
Performance |
| Timeline |
| Fidus Investment Corp |
| Sealed Air |
Fidus Investment and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Sealed Air
The main advantage of trading using opposite Fidus Investment and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Sealed Air 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 Sealed Air will offset losses from the drop in Sealed Air's long position.| Fidus Investment vs. Federated Premier Municipal | Fidus Investment vs. Blackrock Muniyield | Fidus Investment vs. Federated Investors B | Fidus Investment vs. SEI Investments |
| Sealed Air vs. Avery Dennison Corp | Sealed Air vs. International Paper | Sealed Air vs. Sonoco Products | Sealed Air vs. Packaging Corp of |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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