Correlation Between Fidus Investment and Stingray
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Stingray 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 Stingray 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 Stingray Group, you can compare the effects of market volatilities on Fidus Investment and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Stingray.
Diversification Opportunities for Fidus Investment and Stingray
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidus and Stingray is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group 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 Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Fidus Investment i.e., Fidus Investment and Stingray go up and down completely randomly.
Pair Corralation between Fidus Investment and Stingray
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.51 times more return on investment than Stingray. However, Fidus Investment Corp is 1.95 times less risky than Stingray. It trades about 0.13 of its potential returns per unit of risk. Stingray Group is currently generating about -0.21 per unit of risk. If you would invest 2,072 in Fidus Investment Corp on October 7, 2024 and sell it today you would earn a total of 47.00 from holding Fidus Investment Corp or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Fidus Investment Corp vs. Stingray Group
Performance |
| Timeline |
| Fidus Investment Corp |
| Stingray Group |
Fidus Investment and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Stingray
The main advantage of trading using opposite Fidus Investment and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray'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 |
| Stingray vs. XCPCNL Business Services | Stingray vs. International Consolidated Companies | Stingray vs. Mills Music Trust | Stingray vs. Citrine Global Corp |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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