Correlation Between Levi Strauss and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Levi Strauss 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 Levi Strauss and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Levi Strauss Co and Fidus Investment Corp, you can compare the effects of market volatilities on Levi Strauss 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 Levi Strauss with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Levi Strauss and Fidus Investment.
Diversification Opportunities for Levi Strauss and Fidus Investment
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Levi and Fidus is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Levi Strauss Co 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 Levi Strauss 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 Levi Strauss Co 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 Levi Strauss i.e., Levi Strauss and Fidus Investment go up and down completely randomly.
Pair Corralation between Levi Strauss and Fidus Investment
Given the investment horizon of 90 days Levi Strauss is expected to generate 1.31 times less return on investment than Fidus Investment. In addition to that, Levi Strauss is 2.45 times more volatile than Fidus Investment Corp. It trades about 0.02 of its total potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.08 per unit of volatility. If you would invest 1,510 in Fidus Investment Corp on September 4, 2024 and sell it today you would earn a total of 598.00 from holding Fidus Investment Corp or generate 39.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Levi Strauss Co vs. Fidus Investment Corp
Performance |
Timeline |
Levi Strauss |
Fidus Investment Corp |
Levi Strauss and Fidus Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Levi Strauss and Fidus Investment
The main advantage of trading using opposite Levi Strauss and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levi Strauss 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.Levi Strauss vs. On Holding | Levi Strauss vs. Steven Madden | Levi Strauss vs. Crocs Inc | Levi Strauss vs. Designer Brands |
Fidus Investment vs. Golub Capital BDC | Fidus Investment vs. BlackRock TCP Capital | Fidus Investment vs. Carlyle Secured Lending | Fidus Investment vs. Sixth Street Specialty |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Bonds Directory Find actively traded corporate debentures issued by US companies |