Correlation Between Gladstone Investment and Fidus Investment

Can any of the company-specific risk be diversified away by investing in both Gladstone Investment 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 Gladstone Investment and Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gladstone Investment and Fidus Investment Corp, you can compare the effects of market volatilities on Gladstone Investment 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 Gladstone Investment with a short position of Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Fidus Investment.

Diversification Opportunities for Gladstone Investment and Fidus Investment

-0.34

Correlation Coefficient

Gladstone Investment  Fidus Investment

Very good diversification

The 3 months correlation between Gladstone and Fidus is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment 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 Gladstone 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 Gladstone Investment 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 Gladstone Investment i.e., Gladstone Investment and Fidus Investment go up and down completely randomly.

Pair Corralation between Gladstone Investment and Fidus Investment

Assuming the 90 days horizon Gladstone Investment is expected to generate 0.22 times more return on investment than Fidus Investment. However, Gladstone Investment is 4.49 times less risky than Fidus Investment. It trades about 0.13 of its potential returns per unit of risk. Fidus Investment Corp is currently generating about -0.02 per unit of risk. If you would invest  2,519  in Gladstone Investment on October 6, 2025 and sell it today you would earn a total of  54.00  from holding Gladstone Investment or generate 2.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gladstone Investment  vs.  Fidus Investment Corp

Gladstone Investment

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Gladstone Investment are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Gladstone Investment is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Fidus Investment Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Fidus Investment Corp has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Pair Trading with Gladstone Investment and Fidus Investment

The main advantage of trading using opposite Gladstone Investment and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment 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.

The idea behind Gladstone Investment and Fidus Investment Corp 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.