Correlation Between Fidus Investment and ATMOS

Can any of the company-specific risk be diversified away by investing in both Fidus Investment and ATMOS 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 ATMOS 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 ATMOS ENERGY P, you can compare the effects of market volatilities on Fidus Investment and ATMOS 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 ATMOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and ATMOS.

Diversification Opportunities for Fidus Investment and ATMOS

-0.22

Correlation Coefficient

Fidus Investment  ATMOS

Very good diversification

The 3 months correlation between Fidus and ATMOS is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and ATMOS ENERGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMOS ENERGY P 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 ATMOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMOS ENERGY P has no effect on the direction of Fidus Investment i.e., Fidus Investment and ATMOS go up and down completely randomly.

Pair Corralation between Fidus Investment and ATMOS

Given the investment horizon of 90 days Fidus Investment is expected to generate 73.32 times less return on investment than ATMOS. But when comparing it to its historical volatility, Fidus Investment Corp is 77.11 times less risky than ATMOS. It trades about 0.07 of its potential returns per unit of risk. ATMOS ENERGY P is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  8,614  in ATMOS ENERGY P on September 19, 2024 and sell it today you would earn a total of  121.00  from holding ATMOS ENERGY P or generate 1.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	40.52%
Values	Daily Returns

Fidus Investment Corp  vs.  ATMOS ENERGY P

Fidus Investment Corp

Risk-Adjusted Performance

8 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidus Investment Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Fidus Investment is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

ATMOS ENERGY P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATMOS ENERGY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for ATMOS ENERGY P investors.

Pair Trading with Fidus Investment and ATMOS

The main advantage of trading using opposite Fidus Investment and ATMOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, ATMOS 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 ATMOS will offset losses from the drop in ATMOS's long position.

The idea behind Fidus Investment Corp and ATMOS ENERGY P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..