Correlation Between Chemtrade Logistics and Fiera Capital
Can any of the company-specific risk be diversified away by investing in both Chemtrade Logistics 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 Chemtrade Logistics and Fiera Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemtrade Logistics Income and Fiera Capital, you can compare the effects of market volatilities on Chemtrade Logistics 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 Chemtrade Logistics with a short position of Fiera Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemtrade Logistics and Fiera Capital.
Diversification Opportunities for Chemtrade Logistics and Fiera Capital
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chemtrade and Fiera is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Chemtrade Logistics Income and Fiera Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital and Chemtrade Logistics 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 Chemtrade Logistics Income 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 Chemtrade Logistics i.e., Chemtrade Logistics and Fiera Capital go up and down completely randomly.
Pair Corralation between Chemtrade Logistics and Fiera Capital
Assuming the 90 days trading horizon Chemtrade Logistics Income is expected to generate 0.34 times more return on investment than Fiera Capital. However, Chemtrade Logistics Income is 2.9 times less risky than Fiera Capital. It trades about 0.26 of its potential returns per unit of risk. Fiera Capital is currently generating about 0.06 per unit of risk. If you would invest 1,086 in Chemtrade Logistics Income on August 28, 2024 and sell it today you would earn a total of 75.00 from holding Chemtrade Logistics Income or generate 6.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemtrade Logistics Income vs. Fiera Capital
Performance |
| Timeline |
| Chemtrade Logistics |
| Fiera Capital |
Chemtrade Logistics and Fiera Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemtrade Logistics and Fiera Capital
The main advantage of trading using opposite Chemtrade Logistics and Fiera Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemtrade Logistics 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.| Chemtrade Logistics vs. First Hydrogen Corp | Chemtrade Logistics vs. Next Hydrogen Solutions | Chemtrade Logistics vs. iShares Canadian HYBrid | Chemtrade Logistics vs. Altagas Cum Red |
| Fiera Capital vs. Timbercreek Financial Corp | Fiera Capital vs. Alaris Equity Partners | Fiera Capital vs. Slate Grocery REIT | Fiera Capital vs. NorthWest Healthcare Properties |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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