Correlation Between First National and Fiera Capital
Can any of the company-specific risk be diversified away by investing in both First National 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 First National and Fiera Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First National Financial and Fiera Capital, you can compare the effects of market volatilities on First National 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 First National with a short position of Fiera Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of First National and Fiera Capital.
Diversification Opportunities for First National and Fiera Capital
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and Fiera is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding First National Financial and Fiera Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital and First National 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 First National Financial 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 First National i.e., First National and Fiera Capital go up and down completely randomly.
Pair Corralation between First National and Fiera Capital
Assuming the 90 days horizon First National Financial is expected to generate 0.29 times more return on investment than Fiera Capital. However, First National Financial is 3.5 times less risky than Fiera Capital. It trades about 0.43 of its potential returns per unit of risk. Fiera Capital is currently generating about 0.05 per unit of risk. If you would invest 4,045 in First National Financial on August 28, 2024 and sell it today you would earn a total of 399.00 from holding First National Financial or generate 9.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First National Financial vs. Fiera Capital
Performance |
| Timeline |
| First National Financial |
| Fiera Capital |
First National and Fiera Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First National and Fiera Capital
The main advantage of trading using opposite First National and Fiera Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First National 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.| First National vs. Exchange Income | First National vs. Atrium Mortgage Investment | First National vs. Equitable Group | First National vs. Timbercreek Financial Corp |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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