Correlation Between SunOpta and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both SunOpta 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 SunOpta and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Fidus Investment Corp, you can compare the effects of market volatilities on SunOpta 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 SunOpta with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Fidus Investment.
Diversification Opportunities for SunOpta and Fidus Investment
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SunOpta and Fidus is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta 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 SunOpta 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 SunOpta 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 SunOpta i.e., SunOpta and Fidus Investment go up and down completely randomly.
Pair Corralation between SunOpta and Fidus Investment
Given the investment horizon of 90 days SunOpta is expected to generate 4.15 times more return on investment than Fidus Investment. However, SunOpta is 4.15 times more volatile than Fidus Investment Corp. It trades about 0.39 of its potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.43 per unit of risk. If you would invest 597.00 in SunOpta on August 30, 2024 and sell it today you would earn a total of 184.00 from holding SunOpta or generate 30.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SunOpta vs. Fidus Investment Corp
Performance |
| Timeline |
| SunOpta |
| Fidus Investment Corp |
SunOpta and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Fidus Investment
The main advantage of trading using opposite SunOpta and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta 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.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
| 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |