Correlation Between Fisher Investments and Advantage Portfolio
Can any of the company-specific risk be diversified away by investing in both Fisher Investments and Advantage Portfolio 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 Advantage Portfolio 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 Advantage Portfolio Class, you can compare the effects of market volatilities on Fisher Investments and Advantage Portfolio 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 Advantage Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Investments and Advantage Portfolio.
Diversification Opportunities for Fisher Investments and Advantage Portfolio
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fisher and Advantage is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Large Cap and Advantage Portfolio Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Portfolio Class 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 Advantage Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Portfolio Class has no effect on the direction of Fisher Investments i.e., Fisher Investments and Advantage Portfolio go up and down completely randomly.
Pair Corralation between Fisher Investments and Advantage Portfolio
Assuming the 90 days horizon Fisher Large Cap is expected to under-perform the Advantage Portfolio. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fisher Large Cap is 1.13 times less risky than Advantage Portfolio. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Advantage Portfolio Class is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,469 in Advantage Portfolio Class on November 5, 2024 and sell it today you would earn a total of 92.00 from holding Advantage Portfolio Class or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Large Cap vs. Advantage Portfolio Class
Performance |
| Timeline |
| Fisher Investments |
| Advantage Portfolio Class |
Fisher Investments and Advantage Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Investments and Advantage Portfolio
The main advantage of trading using opposite Fisher Investments and Advantage Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Investments position performs unexpectedly, Advantage Portfolio 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 Advantage Portfolio will offset losses from the drop in Advantage Portfolio's long position.| Fisher Investments vs. Oakmark Fund Investor | Fisher Investments vs. Calvert Large Cap | Fisher Investments vs. Blackrock Large Cap | Fisher Investments vs. Transamerica Large Cap |
| Advantage Portfolio vs. Hewitt Money Market | Advantage Portfolio vs. Edward Jones Money | Advantage Portfolio vs. Davis Financial Fund | Advantage Portfolio vs. Financials Ultrasector Profund |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Correlations Find global opportunities by holding instruments from different markets |