Correlation Between City National and Fisher Investments
Can any of the company-specific risk be diversified away by investing in both City National and Fisher Investments 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 City National and Fisher Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City National Rochdale and Fisher Large Cap, you can compare the effects of market volatilities on City National and Fisher Investments 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 City National with a short position of Fisher Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Fisher Investments.
Diversification Opportunities for City National and Fisher Investments
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between City and Fisher is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Fisher Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Investments and City National 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 City National Rochdale are associated (or correlated) with Fisher Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Investments has no effect on the direction of City National i.e., City National and Fisher Investments go up and down completely randomly.
Pair Corralation between City National and Fisher Investments
Assuming the 90 days horizon City National Rochdale is expected to generate 0.06 times more return on investment than Fisher Investments. However, City National Rochdale is 17.29 times less risky than Fisher Investments. It trades about 0.98 of its potential returns per unit of risk. Fisher Large Cap is currently generating about -0.01 per unit of risk. If you would invest 1,939 in City National Rochdale on November 6, 2024 and sell it today you would earn a total of 23.00 from holding City National Rochdale or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
City National Rochdale vs. Fisher Large Cap
Performance |
| Timeline |
| City National Rochdale |
| Fisher Investments |
City National and Fisher Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City National and Fisher Investments
The main advantage of trading using opposite City National and Fisher Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National position performs unexpectedly, Fisher Investments 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 Fisher Investments will offset losses from the drop in Fisher Investments' long position.| City National vs. Franklin Government Money | City National vs. Davis Financial Fund | City National vs. Edward Jones Money | City National vs. Putnam Money Market |
| Fisher Investments vs. Hartford Municipal Short | Fisher Investments vs. Franklin Adjustable Government | Fisher Investments vs. Pace Municipal Fixed | Fisher Investments vs. Bbh Intermediate Municipal |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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