Correlation Between Fidus Investment and Eastern
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Eastern 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 Fidus Investment and Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidus Investment Corp and Eastern Co, you can compare the effects of market volatilities on Fidus Investment and Eastern 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 Fidus Investment with a short position of Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Eastern.
Diversification Opportunities for Fidus Investment and Eastern
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidus and Eastern is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Eastern Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern and Fidus Investment 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 Fidus Investment Corp are associated (or correlated) with Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern has no effect on the direction of Fidus Investment i.e., Fidus Investment and Eastern go up and down completely randomly.
Pair Corralation between Fidus Investment and Eastern
Given the investment horizon of 90 days Fidus Investment Corp is expected to generate 0.32 times more return on investment than Eastern. However, Fidus Investment Corp is 3.16 times less risky than Eastern. It trades about 0.16 of its potential returns per unit of risk. Eastern Co is currently generating about -0.11 per unit of risk. If you would invest 1,895 in Fidus Investment Corp on September 25, 2024 and sell it today you would earn a total of 153.00 from holding Fidus Investment Corp or generate 8.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fidus Investment Corp vs. Eastern Co
Performance |
Timeline |
Fidus Investment Corp |
Eastern |
Fidus Investment and Eastern Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidus Investment and Eastern
The main advantage of trading using opposite Fidus Investment and Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Eastern 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 Eastern will offset losses from the drop in Eastern's long position.Fidus Investment vs. Aquagold International | Fidus Investment vs. Morningstar Unconstrained Allocation | Fidus Investment vs. Thrivent High Yield | Fidus Investment vs. Via Renewables |
Eastern vs. Timken Company | Eastern vs. Lincoln Electric Holdings | Eastern vs. Hillman Solutions Corp | Eastern vs. AB SKF |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |