Correlation Between Fidus Investment and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Sweetgreen 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 Sweetgreen 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 Sweetgreen, you can compare the effects of market volatilities on Fidus Investment and Sweetgreen 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 Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Sweetgreen.
Diversification Opportunities for Fidus Investment and Sweetgreen
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidus and Sweetgreen is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen 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 Sweetgreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweetgreen has no effect on the direction of Fidus Investment i.e., Fidus Investment and Sweetgreen go up and down completely randomly.
Pair Corralation between Fidus Investment and Sweetgreen
Given the investment horizon of 90 days Fidus Investment is expected to generate 6.6 times less return on investment than Sweetgreen. But when comparing it to its historical volatility, Fidus Investment Corp is 6.08 times less risky than Sweetgreen. It trades about 0.09 of its potential returns per unit of risk. Sweetgreen is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,046 in Sweetgreen on September 4, 2024 and sell it today you would earn a total of 2,877 from holding Sweetgreen or generate 275.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Sweetgreen
Performance |
| Timeline |
| Fidus Investment Corp |
| Sweetgreen |
Fidus Investment and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Sweetgreen
The main advantage of trading using opposite Fidus Investment and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Sweetgreen 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 Sweetgreen will offset losses from the drop in Sweetgreen'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 |
| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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