Correlation Between CITIGROUP and Fidus Investment
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By analyzing existing cross correlation between CITIGROUP INC 465 and Fidus Investment Corp, you can compare the effects of market volatilities on CITIGROUP 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 CITIGROUP with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIGROUP and Fidus Investment.
Diversification Opportunities for CITIGROUP and Fidus Investment
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CITIGROUP and Fidus is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP INC 465 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 CITIGROUP 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 CITIGROUP INC 465 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 CITIGROUP i.e., CITIGROUP and Fidus Investment go up and down completely randomly.
Pair Corralation between CITIGROUP and Fidus Investment
Assuming the 90 days trading horizon CITIGROUP is expected to generate 6.64 times less return on investment than Fidus Investment. In addition to that, CITIGROUP is 1.13 times more volatile than Fidus Investment Corp. It trades about 0.07 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 |
CITIGROUP INC 465 vs. Fidus Investment Corp
Performance |
| Timeline |
| CITIGROUP INC 465 |
| Fidus Investment Corp |
CITIGROUP and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIGROUP and Fidus Investment
The main advantage of trading using opposite CITIGROUP and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIGROUP 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.| CITIGROUP vs. SunOpta | CITIGROUP vs. National CineMedia | CITIGROUP vs. National Vision Holdings | CITIGROUP vs. Weibo Corp |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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