Correlation Between Fiera Capital and State Street
Can any of the company-specific risk be diversified away by investing in both Fiera Capital and State Street 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 State Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiera Capital and State Street Corp, you can compare the effects of market volatilities on Fiera Capital and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiera Capital and State Street.
Diversification Opportunities for Fiera Capital and State Street
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fiera and State is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and State Street Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Corp 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Corp has no effect on the direction of Fiera Capital i.e., Fiera Capital and State Street go up and down completely randomly.
Pair Corralation between Fiera Capital and State Street
Assuming the 90 days horizon Fiera Capital is expected to generate 3.03 times less return on investment than State Street. In addition to that, Fiera Capital is 1.96 times more volatile than State Street Corp. It trades about 0.04 of its total potential returns per unit of risk. State Street Corp is currently generating about 0.22 per unit of volatility. If you would invest 9,298 in State Street Corp on August 27, 2024 and sell it today you would earn a total of 581.00 from holding State Street Corp or generate 6.25% 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. State Street Corp
Performance |
| Timeline |
| Fiera Capital |
| State Street Corp |
Fiera Capital and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiera Capital and State Street
The main advantage of trading using opposite Fiera Capital and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiera Capital position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street'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 |
| State Street vs. Northern Trust | State Street vs. Franklin Resources | State Street vs. Invesco Plc | State Street vs. T Rowe Price |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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