Correlation Between Fisher Investments and Payden Strategic
Can any of the company-specific risk be diversified away by investing in both Fisher Investments and Payden Strategic 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 Payden Strategic 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 Payden Strategic Income, you can compare the effects of market volatilities on Fisher Investments and Payden Strategic 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 Payden Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Investments and Payden Strategic.
Diversification Opportunities for Fisher Investments and Payden Strategic
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fisher and Payden is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Small Cap and Payden Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Strategic Income 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 Payden Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Strategic Income has no effect on the direction of Fisher Investments i.e., Fisher Investments and Payden Strategic go up and down completely randomly.
Pair Corralation between Fisher Investments and Payden Strategic
Assuming the 90 days horizon Fisher Small Cap is expected to under-perform the Payden Strategic. In addition to that, Fisher Investments is 15.58 times more volatile than Payden Strategic Income. It trades about -0.08 of its total potential returns per unit of risk. Payden Strategic Income is currently generating about -0.29 per unit of volatility. If you would invest 958.00 in Payden Strategic Income on January 12, 2025 and sell it today you would lose (14.00) from holding Payden Strategic Income or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Small Cap vs. Payden Strategic Income
Performance |
| Timeline |
| Fisher Investments |
| Payden Strategic Income |
Fisher Investments and Payden Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Investments and Payden Strategic
The main advantage of trading using opposite Fisher Investments and Payden Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Investments position performs unexpectedly, Payden Strategic 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 Payden Strategic will offset losses from the drop in Payden Strategic's long position.| Fisher Investments vs. Fisher Large Cap | Fisher Investments vs. Fisher All Foreign | Fisher Investments vs. Tactical Multi Purpose Fund | Fisher Investments vs. Fisher Stock |
| Payden Strategic vs. Payden Corporate Bond | Payden Strategic vs. Payden Floating Rate | Payden Strategic vs. Payden Absolute Return | Payden Strategic vs. Payden Porate Bond |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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