Correlation Between Fiera Capital and NXG NextGen
Can any of the company-specific risk be diversified away by investing in both Fiera Capital and NXG NextGen 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 NXG NextGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiera Capital and NXG NextGen Infrastructure, you can compare the effects of market volatilities on Fiera Capital and NXG NextGen 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 NXG NextGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiera Capital and NXG NextGen.
Diversification Opportunities for Fiera Capital and NXG NextGen
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fiera and NXG is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and NXG NextGen Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NXG NextGen Infrastr 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 NXG NextGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NXG NextGen Infrastr has no effect on the direction of Fiera Capital i.e., Fiera Capital and NXG NextGen go up and down completely randomly.
Pair Corralation between Fiera Capital and NXG NextGen
Assuming the 90 days horizon Fiera Capital is expected to generate 5.48 times less return on investment than NXG NextGen. In addition to that, Fiera Capital is 2.11 times more volatile than NXG NextGen Infrastructure. It trades about 0.05 of its total potential returns per unit of risk. NXG NextGen Infrastructure is currently generating about 0.54 per unit of volatility. If you would invest 4,350 in NXG NextGen Infrastructure on August 28, 2024 and sell it today you would earn a total of 647.00 from holding NXG NextGen Infrastructure or generate 14.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 85.71% |
| Values | Daily Returns |
Fiera Capital vs. NXG NextGen Infrastructure
Performance |
| Timeline |
| Fiera Capital |
| NXG NextGen Infrastr |
Fiera Capital and NXG NextGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiera Capital and NXG NextGen
The main advantage of trading using opposite Fiera Capital and NXG NextGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiera Capital position performs unexpectedly, NXG NextGen 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 NXG NextGen will offset losses from the drop in NXG NextGen'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 |
| NXG NextGen vs. PowerUp Acquisition Corp | NXG NextGen vs. Aurora Innovation | NXG NextGen vs. HUMANA INC | NXG NextGen vs. Aquagold International |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |