Correlation Between Fidus Investment and Viking Holdings
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Viking Holdings 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 Viking Holdings 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 Viking Holdings, you can compare the effects of market volatilities on Fidus Investment and Viking Holdings 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 Viking Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Viking Holdings.
Diversification Opportunities for Fidus Investment and Viking Holdings
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidus and Viking is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Viking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Holdings 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 Viking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Holdings has no effect on the direction of Fidus Investment i.e., Fidus Investment and Viking Holdings go up and down completely randomly.
Pair Corralation between Fidus Investment and Viking Holdings
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.4 times more return on investment than Viking Holdings. However, Fidus Investment Corp is 2.49 times less risky than Viking Holdings. It trades about 0.37 of its potential returns per unit of risk. Viking Holdings is currently generating about 0.14 per unit of risk. If you would invest 2,075 in Fidus Investment Corp on October 25, 2024 and sell it today you would earn a total of 112.00 from holding Fidus Investment Corp or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Viking Holdings
Performance |
| Timeline |
| Fidus Investment Corp |
| Viking Holdings |
Fidus Investment and Viking Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Viking Holdings
The main advantage of trading using opposite Fidus Investment and Viking Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Viking Holdings 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 Viking Holdings will offset losses from the drop in Viking Holdings' 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 |
| Viking Holdings vs. Origin Materials | Viking Holdings vs. Bank of New | Viking Holdings vs. Ecovyst | Viking Holdings vs. NL Industries |
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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