Correlation Between Fidus Investment and China Southern
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and China Southern 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 China Southern 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 China Southern Airlines, you can compare the effects of market volatilities on Fidus Investment and China Southern 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 China Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and China Southern.
Diversification Opportunities for Fidus Investment and China Southern
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidus and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and China Southern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Southern Airlines 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 China Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Southern Airlines has no effect on the direction of Fidus Investment i.e., Fidus Investment and China Southern go up and down completely randomly.
Pair Corralation between Fidus Investment and China Southern
If you would invest 1,635 in Fidus Investment Corp on November 19, 2024 and sell it today you would earn a total of 702.00 from holding Fidus Investment Corp or generate 42.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. China Southern Airlines
Performance |
| Timeline |
| Fidus Investment Corp |
| China Southern Airlines |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Fidus Investment and China Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and China Southern
The main advantage of trading using opposite Fidus Investment and China Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, China Southern 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 China Southern will offset losses from the drop in China Southern'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 |
| China Southern vs. Weibo Corp | China Southern vs. Radcom | China Southern vs. Drilling Tools International | China Southern vs. Pembina Pipeline |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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