Correlation Between First American and Fisher Investments
Can any of the company-specific risk be diversified away by investing in both First American and Fisher Investments 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 American and Fisher Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First American Funds and Fisher Small Cap, you can compare the effects of market volatilities on First American and Fisher Investments 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 American with a short position of Fisher Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of First American and Fisher Investments.
Diversification Opportunities for First American and Fisher Investments
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Fisher is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding First American Funds and Fisher Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Investments and First American 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 American Funds are associated (or correlated) with Fisher Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Investments has no effect on the direction of First American i.e., First American and Fisher Investments go up and down completely randomly.
Pair Corralation between First American and Fisher Investments
If you would invest 1,228 in Fisher Small Cap on September 4, 2024 and sell it today you would earn a total of 125.00 from holding Fisher Small Cap or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
First American Funds vs. Fisher Small Cap
Performance |
| Timeline |
| First American Funds |
| Fisher Investments |
First American and Fisher Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First American and Fisher Investments
The main advantage of trading using opposite First American and Fisher Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First American position performs unexpectedly, Fisher Investments 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 Investments will offset losses from the drop in Fisher Investments' long position.| First American vs. Vanguard Total Stock | First American vs. Vanguard 500 Index | First American vs. Vanguard Total Stock | First American vs. Vanguard Total Stock |
| Fisher Investments vs. First American Funds | Fisher Investments vs. Franklin Government Money | Fisher Investments vs. Hsbc Treasury Money | Fisher Investments vs. Wilmington Funds |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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