Correlation Between Fisher Investments and American Funds
Can any of the company-specific risk be diversified away by investing in both Fisher Investments and American Funds 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 American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fisher Small Cap and American Funds Growth, you can compare the effects of market volatilities on Fisher Investments and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Investments and American Funds.
Diversification Opportunities for Fisher Investments and American Funds
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fisher and American is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Small Cap and American Funds Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Growth 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 Small Cap are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Growth has no effect on the direction of Fisher Investments i.e., Fisher Investments and American Funds go up and down completely randomly.
Pair Corralation between Fisher Investments and American Funds
Assuming the 90 days horizon Fisher Investments is expected to generate 1.08 times less return on investment than American Funds. In addition to that, Fisher Investments is 1.53 times more volatile than American Funds Growth. It trades about 0.07 of its total potential returns per unit of risk. American Funds Growth is currently generating about 0.11 per unit of volatility. If you would invest 2,063 in American Funds Growth on August 27, 2024 and sell it today you would earn a total of 536.00 from holding American Funds Growth or generate 25.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Small Cap vs. American Funds Growth
Performance |
| Timeline |
| Fisher Investments |
| American Funds Growth |
Fisher Investments and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Investments and American Funds
The main advantage of trading using opposite Fisher Investments and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Investments position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Fisher Investments vs. Fisher Large Cap | Fisher Investments vs. Tactical Multi Purpose Fund | Fisher Investments vs. Nasdaq 100 2x Strategy | Fisher Investments vs. Small Cap Core |
| American Funds vs. Kinetics Small Cap | American Funds vs. Tax Managed Mid Small | American Funds vs. Artisan Small Cap | American Funds vs. Fisher Small Cap |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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