Correlation Between Flow Capital and Fiera Capital
Can any of the company-specific risk be diversified away by investing in both Flow Capital and Fiera Capital 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 Flow Capital and Fiera Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flow Capital Corp and Fiera Capital, you can compare the effects of market volatilities on Flow Capital and Fiera Capital 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 Flow Capital with a short position of Fiera Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Capital and Fiera Capital.
Diversification Opportunities for Flow Capital and Fiera Capital
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flow and Fiera is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Flow Capital Corp and Fiera Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital and Flow Capital 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 Flow Capital Corp are associated (or correlated) with Fiera Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiera Capital has no effect on the direction of Flow Capital i.e., Flow Capital and Fiera Capital go up and down completely randomly.
Pair Corralation between Flow Capital and Fiera Capital
Assuming the 90 days horizon Flow Capital Corp is expected to generate 0.11 times more return on investment than Fiera Capital. However, Flow Capital Corp is 9.33 times less risky than Fiera Capital. It trades about -0.13 of its potential returns per unit of risk. Fiera Capital is currently generating about -0.07 per unit of risk. If you would invest 61.00 in Flow Capital Corp on October 24, 2024 and sell it today you would lose (1.00) from holding Flow Capital Corp or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.36% |
| Values | Daily Returns |
Flow Capital Corp vs. Fiera Capital
Performance |
| Timeline |
| Flow Capital Corp |
| Fiera Capital |
Flow Capital and Fiera Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Capital and Fiera Capital
The main advantage of trading using opposite Flow Capital and Fiera Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Capital position performs unexpectedly, Fiera Capital 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 Fiera Capital will offset losses from the drop in Fiera Capital's long position.| Flow Capital vs. Guardian Capital Group | Flow Capital vs. Urbana | Flow Capital vs. Princeton Capital | Flow Capital vs. Blackhawk Growth Corp |
| Fiera Capital vs. AGF Management Limited | Fiera Capital vs. Azimut Holding SpA | Fiera Capital vs. Ameritrans Capital Corp | Fiera Capital vs. Elysee Development Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |