Correlation Between Vestis and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Vestis 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 Vestis and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vestis and Fidus Investment Corp, you can compare the effects of market volatilities on Vestis 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 Vestis with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestis and Fidus Investment.
Diversification Opportunities for Vestis and Fidus Investment
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vestis and Fidus is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vestis 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 Vestis 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 Vestis 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 Vestis i.e., Vestis and Fidus Investment go up and down completely randomly.
Pair Corralation between Vestis and Fidus Investment
Given the investment horizon of 90 days Vestis is expected to generate 8.08 times more return on investment than Fidus Investment. However, Vestis is 8.08 times more volatile than Fidus Investment Corp. It trades about 0.19 of its potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.5 per unit of risk. If you would invest 1,409 in Vestis on September 13, 2024 and sell it today you would earn a total of 228.00 from holding Vestis or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vestis vs. Fidus Investment Corp
Performance |
| Timeline |
| Vestis |
| Fidus Investment Corp |
Vestis and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vestis and Fidus Investment
The main advantage of trading using opposite Vestis and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestis 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.| Vestis vs. McGrath RentCorp | Vestis vs. Custom Truck One | Vestis vs. Herc Holdings | Vestis vs. Alta Equipment Group |
| Fidus Investment vs. Visa Class A | Fidus Investment vs. Diamond Hill Investment | Fidus Investment vs. Distoken Acquisition | Fidus Investment vs. AllianceBernstein Holding LP |
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 Stocks Directory module to find actively traded stocks across global markets.
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