Correlation Between SHUAA Partners and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both SHUAA Partners 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 SHUAA Partners and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHUAA Partners Acquisition and Fidus Investment Corp, you can compare the effects of market volatilities on SHUAA Partners 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 SHUAA Partners with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHUAA Partners and Fidus Investment.
Diversification Opportunities for SHUAA Partners and Fidus Investment
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between SHUAA and Fidus is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding SHUAA Partners Acquisition 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 SHUAA Partners 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 SHUAA Partners Acquisition 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 SHUAA Partners i.e., SHUAA Partners and Fidus Investment go up and down completely randomly.
Pair Corralation between SHUAA Partners and Fidus Investment
If you would invest 2,029 in Fidus Investment Corp on September 12, 2024 and sell it today you would earn a total of 120.00 from holding Fidus Investment Corp or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
SHUAA Partners Acquisition vs. Fidus Investment Corp
Performance |
| Timeline |
| SHUAA Partners Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fidus Investment Corp |
SHUAA Partners and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHUAA Partners and Fidus Investment
The main advantage of trading using opposite SHUAA Partners and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHUAA Partners 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.| SHUAA Partners vs. Asbury Automotive Group | SHUAA Partners vs. Thor Industries | SHUAA Partners vs. Lululemon Athletica | SHUAA Partners vs. LB Foster |
| Fidus Investment vs. Gladstone Investment | Fidus Investment vs. Stellus Capital Investment | Fidus Investment vs. Prospect Capital | Fidus Investment vs. Gladstone Capital |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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