Correlation Between Fidus Investment and WhiteHorse Finance
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and WhiteHorse Finance 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 WhiteHorse Finance 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 WhiteHorse Finance, you can compare the effects of market volatilities on Fidus Investment and WhiteHorse Finance 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 WhiteHorse Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and WhiteHorse Finance.
Diversification Opportunities for Fidus Investment and WhiteHorse Finance
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidus and WhiteHorse is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and WhiteHorse Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WhiteHorse Finance 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 WhiteHorse Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WhiteHorse Finance has no effect on the direction of Fidus Investment i.e., Fidus Investment and WhiteHorse Finance go up and down completely randomly.
Pair Corralation between Fidus Investment and WhiteHorse Finance
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.66 times more return on investment than WhiteHorse Finance. However, Fidus Investment Corp is 1.51 times less risky than WhiteHorse Finance. It trades about 0.36 of its potential returns per unit of risk. WhiteHorse Finance is currently generating about -0.46 per unit of risk. If you would invest 1,966 in Fidus Investment Corp on August 27, 2024 and sell it today you would earn a total of 131.00 from holding Fidus Investment Corp or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. WhiteHorse Finance
Performance |
| Timeline |
| Fidus Investment Corp |
| WhiteHorse Finance |
Fidus Investment and WhiteHorse Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and WhiteHorse Finance
The main advantage of trading using opposite Fidus Investment and WhiteHorse Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, WhiteHorse Finance 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 WhiteHorse Finance will offset losses from the drop in WhiteHorse Finance's long position.| Fidus Investment vs. PowerUp Acquisition Corp | Fidus Investment vs. Aurora Innovation | Fidus Investment vs. HUMANA INC | Fidus Investment vs. Aquagold International |
| WhiteHorse Finance vs. Monroe Capital Corp | WhiteHorse Finance vs. Portman Ridge Finance | WhiteHorse Finance vs. Fidus Investment Corp | WhiteHorse Finance vs. Diamond Hill Investment |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stocks Directory Find actively traded stocks across global markets |