Correlation Between National CineMedia and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both National CineMedia 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 National CineMedia and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Fidus Investment Corp, you can compare the effects of market volatilities on National CineMedia 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 National CineMedia with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Fidus Investment.
Diversification Opportunities for National CineMedia and Fidus Investment
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and Fidus is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia 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 National CineMedia 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 National CineMedia 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 National CineMedia i.e., National CineMedia and Fidus Investment go up and down completely randomly.
Pair Corralation between National CineMedia and Fidus Investment
Given the investment horizon of 90 days National CineMedia is expected to under-perform the Fidus Investment. In addition to that, National CineMedia is 3.72 times more volatile than Fidus Investment Corp. It trades about -0.04 of its total potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.51 per unit of volatility. If you would invest 1,950 in Fidus Investment Corp on September 1, 2024 and sell it today you would earn a total of 179.00 from holding Fidus Investment Corp or generate 9.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. Fidus Investment Corp
Performance |
| Timeline |
| National CineMedia |
| Fidus Investment Corp |
National CineMedia and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Fidus Investment
The main advantage of trading using opposite National CineMedia and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia 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.| National CineMedia vs. Mirriad Advertising plc | National CineMedia vs. INEO Tech Corp | National CineMedia vs. Kidoz Inc | National CineMedia vs. Marchex |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |