Correlation Between Fisher Large and Amana Participation
Can any of the company-specific risk be diversified away by investing in both Fisher Large and Amana Participation 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 Fisher Large and Amana Participation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fisher Large Cap and Amana Participation Fund, you can compare the effects of market volatilities on Fisher Large and Amana Participation 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 Fisher Large with a short position of Amana Participation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Large and Amana Participation.
Diversification Opportunities for Fisher Large and Amana Participation
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fisher and Amana is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Large Cap and Amana Participation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amana Participation and Fisher Large 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 Fisher Large Cap are associated (or correlated) with Amana Participation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amana Participation has no effect on the direction of Fisher Large i.e., Fisher Large and Amana Participation go up and down completely randomly.
Pair Corralation between Fisher Large and Amana Participation
Assuming the 90 days horizon Fisher Large Cap is expected to generate 6.34 times more return on investment than Amana Participation. However, Fisher Large is 6.34 times more volatile than Amana Participation Fund. It trades about 0.12 of its potential returns per unit of risk. Amana Participation Fund is currently generating about 0.14 per unit of risk. If you would invest 1,332 in Fisher Large Cap on September 12, 2024 and sell it today you would earn a total of 579.00 from holding Fisher Large Cap or generate 43.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Large Cap vs. Amana Participation Fund
Performance |
| Timeline |
| Fisher Large Cap |
| Amana Participation |
Fisher Large and Amana Participation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Large and Amana Participation
The main advantage of trading using opposite Fisher Large and Amana Participation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Large position performs unexpectedly, Amana Participation 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 Amana Participation will offset losses from the drop in Amana Participation's long position.| Fisher Large vs. American Funds The | Fisher Large vs. American Funds The | Fisher Large vs. Growth Fund Of | Fisher Large vs. Growth Fund Of |
| Amana Participation vs. T Rowe Price | Amana Participation vs. T Rowe Price | Amana Participation vs. Fisher Large Cap | Amana Participation 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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