Correlation Between Minerals Technologies and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Minerals Technologies 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 Minerals Technologies and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minerals Technologies and Fidus Investment Corp, you can compare the effects of market volatilities on Minerals Technologies 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 Minerals Technologies with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minerals Technologies and Fidus Investment.
Diversification Opportunities for Minerals Technologies and Fidus Investment
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Minerals and Fidus is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Minerals Technologies 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 Minerals Technologies 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 Minerals Technologies 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 Minerals Technologies i.e., Minerals Technologies and Fidus Investment go up and down completely randomly.
Pair Corralation between Minerals Technologies and Fidus Investment
Considering the 90-day investment horizon Minerals Technologies is expected to generate 3.17 times more return on investment than Fidus Investment. However, Minerals Technologies is 3.17 times more volatile than Fidus Investment Corp. It trades about 0.18 of its potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.57 per unit of risk. If you would invest 7,600 in Minerals Technologies on September 4, 2024 and sell it today you would earn a total of 714.00 from holding Minerals Technologies or generate 9.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minerals Technologies vs. Fidus Investment Corp
Performance |
| Timeline |
| Minerals Technologies |
| Fidus Investment Corp |
Minerals Technologies and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minerals Technologies and Fidus Investment
The main advantage of trading using opposite Minerals Technologies and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minerals Technologies 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.| Minerals Technologies vs. Innospec | Minerals Technologies vs. Oil Dri | Minerals Technologies vs. H B Fuller | Minerals Technologies vs. Quaker Chemical |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |