Correlation Between Fidus Investment and VentureNet Capital
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and VentureNet Capital 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 VentureNet Capital 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 VentureNet Capital Group, you can compare the effects of market volatilities on Fidus Investment and VentureNet Capital 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 VentureNet Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and VentureNet Capital.
Diversification Opportunities for Fidus Investment and VentureNet Capital
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidus and VentureNet is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and VentureNet Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VentureNet Capital 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 VentureNet Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VentureNet Capital has no effect on the direction of Fidus Investment i.e., Fidus Investment and VentureNet Capital go up and down completely randomly.
Pair Corralation between Fidus Investment and VentureNet Capital
Given the investment horizon of 90 days Fidus Investment is expected to generate 58.29 times less return on investment than VentureNet Capital. But when comparing it to its historical volatility, Fidus Investment Corp is 144.61 times less risky than VentureNet Capital. It trades about 0.23 of its potential returns per unit of risk. VentureNet Capital Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.02 in VentureNet Capital Group on October 24, 2024 and sell it today you would lose (0.01) from holding VentureNet Capital Group or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.43% |
| Values | Daily Returns |
Fidus Investment Corp vs. VentureNet Capital Group
Performance |
| Timeline |
| Fidus Investment Corp |
| VentureNet Capital |
Fidus Investment and VentureNet Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and VentureNet Capital
The main advantage of trading using opposite Fidus Investment and VentureNet Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, VentureNet Capital 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 VentureNet Capital will offset losses from the drop in VentureNet Capital'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 |
| VentureNet Capital vs. Halitron | VentureNet Capital vs. Cal Bay Intl | VentureNet Capital vs. Inolife Technologies | VentureNet Capital vs. XTRA Bitcoin |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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