Correlation Between Fiera Capital and First Trust
Can any of the company-specific risk be diversified away by investing in both Fiera Capital and First Trust 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 First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiera Capital and First Trust Dynamic, you can compare the effects of market volatilities on Fiera Capital and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiera Capital and First Trust.
Diversification Opportunities for Fiera Capital and First Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fiera and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and First Trust Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Dynamic 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Dynamic has no effect on the direction of Fiera Capital i.e., Fiera Capital and First Trust go up and down completely randomly.
Pair Corralation between Fiera Capital and First Trust
If you would invest (100.00) in First Trust Dynamic on November 9, 2024 and sell it today you would earn a total of 100.00 from holding First Trust Dynamic or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Fiera Capital vs. First Trust Dynamic
Performance |
| Timeline |
| Fiera Capital |
| First Trust Dynamic |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Fiera Capital and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiera Capital and First Trust
The main advantage of trading using opposite Fiera Capital and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiera Capital position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Fiera Capital vs. AGF Management Limited | Fiera Capital vs. Azimut Holding SpA | Fiera Capital vs. Ameritrans Capital Corp | Fiera Capital vs. Elysee Development Corp |
| First Trust vs. New Germany Closed | First Trust vs. Eagle Point Income | First Trust vs. Western Asset High | First Trust vs. Nuveen New York |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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