Correlation Between Fidus Investment and SNDL
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and SNDL 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 SNDL 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 SNDL Inc, you can compare the effects of market volatilities on Fidus Investment and SNDL 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 SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and SNDL.
Diversification Opportunities for Fidus Investment and SNDL
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidus and SNDL is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc 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 SNDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNDL Inc has no effect on the direction of Fidus Investment i.e., Fidus Investment and SNDL go up and down completely randomly.
Pair Corralation between Fidus Investment and SNDL
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.25 times more return on investment than SNDL. However, Fidus Investment Corp is 3.94 times less risky than SNDL. It trades about 0.11 of its potential returns per unit of risk. SNDL Inc is currently generating about -0.01 per unit of risk. If you would invest 1,897 in Fidus Investment Corp on September 3, 2024 and sell it today you would earn a total of 211.00 from holding Fidus Investment Corp or generate 11.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. SNDL Inc
Performance |
| Timeline |
| Fidus Investment Corp |
| SNDL Inc |
Fidus Investment and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and SNDL
The main advantage of trading using opposite Fidus Investment and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, SNDL 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 SNDL will offset losses from the drop in SNDL'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 |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |