Correlation Between Fidus Investment and SLR Investment
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and SLR Investment 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 SLR Investment 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 SLR Investment Corp, you can compare the effects of market volatilities on Fidus Investment and SLR Investment 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 SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and SLR Investment.
Diversification Opportunities for Fidus Investment and SLR Investment
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidus and SLR is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and SLR Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLR Investment 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 SLR Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLR Investment Corp has no effect on the direction of Fidus Investment i.e., Fidus Investment and SLR Investment go up and down completely randomly.
Pair Corralation between Fidus Investment and SLR Investment
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.75 times more return on investment than SLR Investment. However, Fidus Investment Corp is 1.33 times less risky than SLR Investment. It trades about 0.51 of its potential returns per unit of risk. SLR Investment Corp is currently generating about 0.38 per unit of risk. If you would invest 1,950 in Fidus Investment Corp on September 1, 2024 and sell it today you would earn a total of 179.00 from holding Fidus Investment Corp or generate 9.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. SLR Investment Corp
Performance |
| Timeline |
| Fidus Investment Corp |
| SLR Investment Corp |
Fidus Investment and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and SLR Investment
The main advantage of trading using opposite Fidus Investment and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, SLR Investment 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 SLR Investment will offset losses from the drop in SLR Investment's long position.| Fidus Investment vs. Visa Class A | Fidus Investment vs. Diamond Hill Investment | Fidus Investment vs. Distoken Acquisition | Fidus Investment vs. Associated Capital Group |
| SLR Investment vs. Horizon Technology Finance | SLR Investment vs. WhiteHorse Finance | SLR Investment vs. Gladstone Capital | SLR Investment vs. PennantPark Floating Rate |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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