Correlation Between Buhler Industries and Fiera Capital

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Can any of the company-specific risk be diversified away by investing in both Buhler Industries 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 Buhler Industries and Fiera Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Buhler Industries and Fiera Capital, you can compare the effects of market volatilities on Buhler Industries 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 Buhler Industries with a short position of Fiera Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Buhler Industries and Fiera Capital.

Diversification Opportunities for Buhler Industries and Fiera Capital

BuhlerFieraDiversified AwayBuhlerFieraDiversified Away100%
-0.63
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Buhler and Fiera is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Buhler Industries and Fiera Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital and Buhler Industries 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 Buhler Industries 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 Buhler Industries i.e., Buhler Industries and Fiera Capital go up and down completely randomly.

Pair Corralation between Buhler Industries and Fiera Capital

Assuming the 90 days trading horizon Buhler Industries is expected to generate 12.12 times more return on investment than Fiera Capital. However, Buhler Industries is 12.12 times more volatile than Fiera Capital. It trades about 0.21 of its potential returns per unit of risk. Fiera Capital is currently generating about -0.35 per unit of risk. If you would invest  339.00  in Buhler Industries on November 23, 2024 and sell it today you would earn a total of  376.00  from holding Buhler Industries or generate 110.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Buhler Industries  vs.  Fiera Capital

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 050100150
JavaScript chart by amCharts 3.21.15BUI FSZ
       Timeline  
Buhler Industries 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Buhler Industries are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Buhler Industries displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb33.544.555.566.57
Fiera Capital 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Fiera Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb7.588.599.510

Buhler Industries and Fiera Capital Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-41.94-31.41-20.88-10.35-0.1810.9322.2333.5344.8456.14 0.050.100.15
JavaScript chart by amCharts 3.21.15BUI FSZ
       Returns  

Pair Trading with Buhler Industries and Fiera Capital

The main advantage of trading using opposite Buhler Industries and Fiera Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Buhler Industries 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.
The idea behind Buhler Industries and Fiera Capital 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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