Correlation Between Fisher Investments and Quantitative
Can any of the company-specific risk be diversified away by investing in both Fisher Investments and Quantitative 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 Investments and Quantitative 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 Quantitative U S, you can compare the effects of market volatilities on Fisher Investments and Quantitative 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 Investments with a short position of Quantitative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Investments and Quantitative.
Diversification Opportunities for Fisher Investments and Quantitative
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fisher and Quantitative is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Large Cap and Quantitative U S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantitative U S and Fisher Investments 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 Quantitative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantitative U S has no effect on the direction of Fisher Investments i.e., Fisher Investments and Quantitative go up and down completely randomly.
Pair Corralation between Fisher Investments and Quantitative
Assuming the 90 days horizon Fisher Investments is expected to generate 1.25 times less return on investment than Quantitative. In addition to that, Fisher Investments is 1.11 times more volatile than Quantitative U S. It trades about 0.19 of its total potential returns per unit of risk. Quantitative U S is currently generating about 0.27 per unit of volatility. If you would invest 1,425 in Quantitative U S on August 31, 2024 and sell it today you would earn a total of 75.00 from holding Quantitative U S or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Large Cap vs. Quantitative U S
Performance |
| Timeline |
| Fisher Investments |
| Quantitative U S |
Fisher Investments and Quantitative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Investments and Quantitative
The main advantage of trading using opposite Fisher Investments and Quantitative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Investments position performs unexpectedly, Quantitative 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 Quantitative will offset losses from the drop in Quantitative's long position.| Fisher Investments vs. Aqr Long Short Equity | Fisher Investments vs. Barings Active Short | Fisher Investments vs. Touchstone Ultra Short | Fisher Investments vs. Old Westbury Short Term |
| Quantitative vs. Siit High Yield | Quantitative vs. Multi Manager High Yield | Quantitative vs. Prudential Short Duration | Quantitative vs. Dunham High Yield |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |