Correlation Between Enlight Renewable and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Enlight Renewable 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 Enlight Renewable and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enlight Renewable Energy and Fidus Investment Corp, you can compare the effects of market volatilities on Enlight Renewable 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 Enlight Renewable with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enlight Renewable and Fidus Investment.
Diversification Opportunities for Enlight Renewable and Fidus Investment
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enlight and Fidus is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Enlight Renewable Energy 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 Enlight Renewable 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 Enlight Renewable Energy 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 Enlight Renewable i.e., Enlight Renewable and Fidus Investment go up and down completely randomly.
Pair Corralation between Enlight Renewable and Fidus Investment
Given the investment horizon of 90 days Enlight Renewable is expected to generate 1.03 times less return on investment than Fidus Investment. In addition to that, Enlight Renewable is 3.69 times more volatile than Fidus Investment Corp. It trades about 0.04 of its total potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.15 per unit of volatility. If you would invest 1,896 in Fidus Investment Corp on September 20, 2024 and sell it today you would earn a total of 130.00 from holding Fidus Investment Corp or generate 6.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Enlight Renewable Energy vs. Fidus Investment Corp
Performance |
Timeline |
Enlight Renewable Energy |
Fidus Investment Corp |
Enlight Renewable and Fidus Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Enlight Renewable and Fidus Investment
The main advantage of trading using opposite Enlight Renewable and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enlight Renewable 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.Enlight Renewable vs. Verde Clean Fuels | Enlight Renewable vs. ReNew Energy Global | Enlight Renewable vs. Ellomay Capital | Enlight Renewable vs. Eco Wave Power |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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