Correlation Between Fidus Investment and SHUAA Partners
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and SHUAA Partners 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 SHUAA Partners 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 SHUAA Partners Acquisition, you can compare the effects of market volatilities on Fidus Investment and SHUAA Partners 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 SHUAA Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and SHUAA Partners.
Diversification Opportunities for Fidus Investment and SHUAA Partners
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidus and SHUAA is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and SHUAA Partners Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHUAA Partners Acqui 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 SHUAA Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHUAA Partners Acqui has no effect on the direction of Fidus Investment i.e., Fidus Investment and SHUAA Partners go up and down completely randomly.
Pair Corralation between Fidus Investment and SHUAA Partners
If you would invest 2,029 in Fidus Investment Corp on September 12, 2024 and sell it today you would earn a total of 120.00 from holding Fidus Investment Corp or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Fidus Investment Corp vs. SHUAA Partners Acquisition
Performance |
| Timeline |
| Fidus Investment Corp |
| SHUAA Partners Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fidus Investment and SHUAA Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and SHUAA Partners
The main advantage of trading using opposite Fidus Investment and SHUAA Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, SHUAA Partners 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 SHUAA Partners will offset losses from the drop in SHUAA Partners' long position.| Fidus Investment vs. Gladstone Investment | Fidus Investment vs. Stellus Capital Investment | Fidus Investment vs. Prospect Capital | Fidus Investment vs. Gladstone Capital |
| SHUAA Partners vs. Asbury Automotive Group | SHUAA Partners vs. Thor Industries | SHUAA Partners vs. Lululemon Athletica | SHUAA Partners vs. LB Foster |
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 Stocks Directory module to find actively traded stocks across global markets.
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