Correlation Between Fiera Capital and Western Asset
Can any of the company-specific risk be diversified away by investing in both Fiera Capital and Western Asset 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 Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiera Capital and Western Asset Managed, you can compare the effects of market volatilities on Fiera Capital and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiera Capital and Western Asset.
Diversification Opportunities for Fiera Capital and Western Asset
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fiera and Western is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and Western Asset Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Managed 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Managed has no effect on the direction of Fiera Capital i.e., Fiera Capital and Western Asset go up and down completely randomly.
Pair Corralation between Fiera Capital and Western Asset
Assuming the 90 days horizon Fiera Capital is expected to generate 4.61 times more return on investment than Western Asset. However, Fiera Capital is 4.61 times more volatile than Western Asset Managed. It trades about 0.05 of its potential returns per unit of risk. Western Asset Managed is currently generating about 0.15 per unit of risk. If you would invest 689.00 in Fiera Capital on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Fiera Capital or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Fiera Capital vs. Western Asset Managed
Performance |
| Timeline |
| Fiera Capital |
| Western Asset Managed |
Fiera Capital and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiera Capital and Western Asset
The main advantage of trading using opposite Fiera Capital and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiera Capital position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset'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 |
| Western Asset vs. Western Asset Municipal | Western Asset vs. Blackrock Muniholdings Quality | Western Asset vs. DTF Tax Free | Western Asset vs. John Hancock Income |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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