Correlation Between Fiera Capital and Aberdeen Japan
Can any of the company-specific risk be diversified away by investing in both Fiera Capital and Aberdeen Japan 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 Aberdeen Japan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiera Capital and Aberdeen Japan Equity, you can compare the effects of market volatilities on Fiera Capital and Aberdeen Japan 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 Aberdeen Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiera Capital and Aberdeen Japan.
Diversification Opportunities for Fiera Capital and Aberdeen Japan
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fiera and Aberdeen is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and Aberdeen Japan Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Japan Equity 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 Aberdeen Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Japan Equity has no effect on the direction of Fiera Capital i.e., Fiera Capital and Aberdeen Japan go up and down completely randomly.
Pair Corralation between Fiera Capital and Aberdeen Japan
Assuming the 90 days horizon Fiera Capital is expected to generate 10.28 times more return on investment than Aberdeen Japan. However, Fiera Capital is 10.28 times more volatile than Aberdeen Japan Equity. It trades about 0.07 of its potential returns per unit of risk. Aberdeen Japan Equity is currently generating about 0.04 per unit of risk. If you would invest 456.00 in Fiera Capital on August 31, 2024 and sell it today you would earn a total of 242.00 from holding Fiera Capital or generate 53.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 75.68% |
| Values | Daily Returns |
Fiera Capital vs. Aberdeen Japan Equity
Performance |
| Timeline |
| Fiera Capital |
| Aberdeen Japan Equity |
Fiera Capital and Aberdeen Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiera Capital and Aberdeen Japan
The main advantage of trading using opposite Fiera Capital and Aberdeen Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiera Capital position performs unexpectedly, Aberdeen Japan 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 Aberdeen Japan will offset losses from the drop in Aberdeen Japan'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 |
| Aberdeen Japan vs. Aberdeen Gbl Eq | Aberdeen Japan vs. Aberdeen Gbl Eq | Aberdeen Japan vs. Aberdeen Global Equty |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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