Correlation Between Stellus Capital and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Stellus Capital 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 Stellus Capital and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stellus Capital Investment and Fidus Investment Corp, you can compare the effects of market volatilities on Stellus Capital 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 Stellus Capital with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellus Capital and Fidus Investment.
Diversification Opportunities for Stellus Capital and Fidus Investment
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Stellus and Fidus is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Stellus Capital Investment 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 Stellus Capital 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 Stellus Capital Investment 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 Stellus Capital i.e., Stellus Capital and Fidus Investment go up and down completely randomly.
Pair Corralation between Stellus Capital and Fidus Investment
Considering the 90-day investment horizon Stellus Capital is expected to generate 1.2 times less return on investment than Fidus Investment. In addition to that, Stellus Capital is 1.2 times more volatile than Fidus Investment Corp. It trades about 0.05 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 1,499 in Fidus Investment Corp on August 27, 2024 and sell it today you would earn a total of 598.00 from holding Fidus Investment Corp or generate 39.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stellus Capital Investment vs. Fidus Investment Corp
Performance |
| Timeline |
| Stellus Capital Inve |
| Fidus Investment Corp |
Stellus Capital and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellus Capital and Fidus Investment
The main advantage of trading using opposite Stellus Capital and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellus Capital 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.| Stellus Capital vs. PowerUp Acquisition Corp | Stellus Capital vs. Aurora Innovation | Stellus Capital vs. HUMANA INC | Stellus Capital vs. Aquagold International |
| Fidus Investment vs. PowerUp Acquisition Corp | Fidus Investment vs. Aurora Innovation | Fidus Investment vs. HUMANA INC | Fidus Investment vs. Aquagold International |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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