Correlation Between Fiera Capital and FAM
Can any of the company-specific risk be diversified away by investing in both Fiera Capital and FAM 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 Fiera Capital and FAM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiera Capital and FAM, you can compare the effects of market volatilities on Fiera Capital and FAM 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 Fiera Capital with a short position of FAM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiera Capital and FAM.
Diversification Opportunities for Fiera Capital and FAM
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fiera and FAM is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and FAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAM and Fiera Capital 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 Fiera Capital are associated (or correlated) with FAM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAM has no effect on the direction of Fiera Capital i.e., Fiera Capital and FAM go up and down completely randomly.
Pair Corralation between Fiera Capital and FAM
Assuming the 90 days horizon Fiera Capital is expected to generate 14.64 times more return on investment than FAM. However, Fiera Capital is 14.64 times more volatile than FAM. It trades about 0.06 of its potential returns per unit of risk. FAM is currently generating about 0.09 per unit of risk. If you would invest 700.00 in Fiera Capital on September 4, 2024 and sell it today you would lose (2.00) from holding Fiera Capital or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 84.75% |
| Values | Daily Returns |
Fiera Capital vs. FAM
Performance |
| Timeline |
| Fiera Capital |
| FAM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Fiera Capital and FAM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiera Capital and FAM
The main advantage of trading using opposite Fiera Capital and FAM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiera Capital position performs unexpectedly, FAM 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 FAM will offset losses from the drop in FAM's long position.| Fiera Capital vs. Western Asset Global | Fiera Capital vs. Invesco Trust For | Fiera Capital vs. Logan Ridge Finance | Fiera Capital vs. Invesco Advantage MIT |
| FAM vs. Brookfield Real Assets | FAM vs. Guggenheim Strategic Opportunities | FAM vs. Cornerstone Strategic Return | FAM vs. Cornerstone Strategic Value |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |