Correlation Between Gap, and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Gap, and Fidus Investment 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 Gap, and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gap, and Fidus Investment Corp, you can compare the effects of market volatilities on Gap, and Fidus Investment 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 Gap, with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and Fidus Investment.
Diversification Opportunities for Gap, and Fidus Investment
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gap, and Fidus is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and Fidus Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidus Investment Corp and Gap, 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 The Gap, are associated (or correlated) with Fidus Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidus Investment Corp has no effect on the direction of Gap, i.e., Gap, and Fidus Investment go up and down completely randomly.
Pair Corralation between Gap, and Fidus Investment
Considering the 90-day investment horizon The Gap, is expected to generate 4.41 times more return on investment than Fidus Investment. However, Gap, is 4.41 times more volatile than Fidus Investment Corp. It trades about 0.22 of its potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.53 per unit of risk. If you would invest 2,074 in The Gap, on September 2, 2024 and sell it today you would earn a total of 351.00 from holding The Gap, or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gap, vs. Fidus Investment Corp
Performance |
| Timeline |
| Gap, |
| Fidus Investment Corp |
Gap, and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and Fidus Investment
The main advantage of trading using opposite Gap, and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, position performs unexpectedly, Fidus Investment 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 Fidus Investment will offset losses from the drop in Fidus Investment's long position.| Gap, vs. Boot Barn Holdings | Gap, vs. BJs Restaurants | Gap, vs. The Cheesecake Factory | Gap, vs. GEN Restaurant Group, |
| Fidus Investment vs. Visa Class A | Fidus Investment vs. Diamond Hill Investment | Fidus Investment vs. Distoken Acquisition | Fidus Investment vs. Associated Capital Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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