Correlation Between Fidus Investment and Tyson Foods
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Tyson Foods 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 Tyson Foods 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 Tyson Foods, you can compare the effects of market volatilities on Fidus Investment and Tyson Foods 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 Tyson Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Tyson Foods.
Diversification Opportunities for Fidus Investment and Tyson Foods
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidus and Tyson is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Tyson Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tyson Foods 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 Tyson Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tyson Foods has no effect on the direction of Fidus Investment i.e., Fidus Investment and Tyson Foods go up and down completely randomly.
Pair Corralation between Fidus Investment and Tyson Foods
Given the investment horizon of 90 days Fidus Investment is expected to generate 1.32 times less return on investment than Tyson Foods. But when comparing it to its historical volatility, Fidus Investment Corp is 1.85 times less risky than Tyson Foods. It trades about 0.11 of its potential returns per unit of risk. Tyson Foods is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,634 in Tyson Foods on September 14, 2024 and sell it today you would earn a total of 1,414 from holding Tyson Foods or generate 30.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Tyson Foods
Performance |
| Timeline |
| Fidus Investment Corp |
| Tyson Foods |
Fidus Investment and Tyson Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Tyson Foods
The main advantage of trading using opposite Fidus Investment and Tyson Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Tyson Foods 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 Tyson Foods will offset losses from the drop in Tyson Foods' long position.| Fidus Investment vs. Visa Class A | Fidus Investment vs. Diamond Hill Investment | Fidus Investment vs. Distoken Acquisition | Fidus Investment vs. AllianceBernstein Holding LP |
| Tyson Foods vs. Bunge Limited | Tyson Foods vs. Cal Maine Foods | Tyson Foods vs. Dole PLC | Tyson Foods vs. Adecoagro SA |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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