Correlation Between Champlain Small and Fisher Small
Can any of the company-specific risk be diversified away by investing in both Champlain Small and Fisher Small 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 Champlain Small and Fisher Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Small and Fisher Small Cap, you can compare the effects of market volatilities on Champlain Small and Fisher Small 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 Champlain Small with a short position of Fisher Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Small and Fisher Small.
Diversification Opportunities for Champlain Small and Fisher Small
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Champlain and Fisher is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Small and Fisher Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Small Cap and Champlain Small 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 Champlain Small are associated (or correlated) with Fisher Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Small Cap has no effect on the direction of Champlain Small i.e., Champlain Small and Fisher Small go up and down completely randomly.
Pair Corralation between Champlain Small and Fisher Small
Assuming the 90 days horizon Champlain Small is expected to generate 1.05 times less return on investment than Fisher Small. But when comparing it to its historical volatility, Champlain Small is 1.1 times less risky than Fisher Small. It trades about 0.33 of its potential returns per unit of risk. Fisher Small Cap is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,207 in Fisher Small Cap on September 1, 2024 and sell it today you would earn a total of 142.00 from holding Fisher Small Cap or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Small vs. Fisher Small Cap
Performance |
| Timeline |
| Champlain Small |
| Fisher Small Cap |
Champlain Small and Fisher Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Small and Fisher Small
The main advantage of trading using opposite Champlain Small and Fisher Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Small position performs unexpectedly, Fisher Small 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 Fisher Small will offset losses from the drop in Fisher Small's long position.| Champlain Small vs. The Hartford Midcap | Champlain Small vs. Mfs Emerging Markets | Champlain Small vs. Wells Fargo Special | Champlain Small vs. Washington Mutual Investors |
| Fisher Small vs. Fisher Large Cap | Fisher Small vs. Fisher All Foreign | Fisher Small vs. Tactical Multi Purpose Fund | Fisher Small vs. Fisher Stock |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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