Correlation Between Fidus Investment and Broadstone Net
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and Broadstone Net 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 Broadstone Net 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 Broadstone Net Lease, you can compare the effects of market volatilities on Fidus Investment and Broadstone Net 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 Broadstone Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Broadstone Net.
Diversification Opportunities for Fidus Investment and Broadstone Net
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidus and Broadstone is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and Broadstone Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadstone Net Lease 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 Broadstone Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadstone Net Lease has no effect on the direction of Fidus Investment i.e., Fidus Investment and Broadstone Net go up and down completely randomly.
Pair Corralation between Fidus Investment and Broadstone Net
Given the investment horizon of 90 days Fidus Investment is expected to generate 22.13 times less return on investment than Broadstone Net. But when comparing it to its historical volatility, Fidus Investment Corp is 2.82 times less risky than Broadstone Net. It trades about 0.07 of its potential returns per unit of risk. Broadstone Net Lease is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest 1,664 in Broadstone Net Lease on June 10, 2025 and sell it today you would earn a total of 204.00 from holding Broadstone Net Lease or generate 12.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidus Investment Corp vs. Broadstone Net Lease
Performance |
| Timeline |
| Fidus Investment Corp |
| Broadstone Net Lease |
Fidus Investment and Broadstone Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and Broadstone Net
The main advantage of trading using opposite Fidus Investment and Broadstone Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, Broadstone Net 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 Broadstone Net will offset losses from the drop in Broadstone Net's long position.| Fidus Investment vs. Golub Capital BDC | Fidus Investment vs. BlackRock TCP Capital | Fidus Investment vs. Carlyle Secured Lending | Fidus Investment vs. Sixth Street Specialty |
| Broadstone Net vs. Douglas Emmett | Broadstone Net vs. Kilroy Realty Corp | Broadstone Net vs. Alexandria Real Estate | Broadstone Net vs. Vornado Realty Trust |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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