Correlation Between Fisher Investments and Small-cap Value
Can any of the company-specific risk be diversified away by investing in both Fisher Investments and Small-cap Value 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 Small-cap Value 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 Small Cap Value Series, you can compare the effects of market volatilities on Fisher Investments and Small-cap Value 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 Small-cap Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Investments and Small-cap Value.
Diversification Opportunities for Fisher Investments and Small-cap Value
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fisher and Small-cap is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Large Cap and Small Cap Value Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Value 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 Small-cap Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Value has no effect on the direction of Fisher Investments i.e., Fisher Investments and Small-cap Value go up and down completely randomly.
Pair Corralation between Fisher Investments and Small-cap Value
Assuming the 90 days horizon Fisher Large Cap is expected to generate 0.8 times more return on investment than Small-cap Value. However, Fisher Large Cap is 1.25 times less risky than Small-cap Value. It trades about 0.12 of its potential returns per unit of risk. Small Cap Value Series is currently generating about 0.07 per unit of risk. If you would invest 1,285 in Fisher Large Cap on August 31, 2024 and sell it today you would earn a total of 601.00 from holding Fisher Large Cap or generate 46.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Large Cap vs. Small Cap Value Series
Performance |
| Timeline |
| Fisher Investments |
| Small Cap Value |
Fisher Investments and Small-cap Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Investments and Small-cap Value
The main advantage of trading using opposite Fisher Investments and Small-cap Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Investments position performs unexpectedly, Small-cap Value 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 Small-cap Value will offset losses from the drop in Small-cap Value'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 |
| Small-cap Value vs. Gabelli Convertible And | Small-cap Value vs. Virtus Convertible | Small-cap Value vs. Rationalpier 88 Convertible | Small-cap Value vs. Fidelity Sai Convertible |
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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