Correlation Between State Street and Fiera Capital
Can any of the company-specific risk be diversified away by investing in both State Street and Fiera Capital 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 State Street and Fiera Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Corp and Fiera Capital, you can compare the effects of market volatilities on State Street and Fiera Capital 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 State Street with a short position of Fiera Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Fiera Capital.
Diversification Opportunities for State Street and Fiera Capital
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between State and Fiera is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding State Street Corp and Fiera Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital and State Street 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 State Street Corp are associated (or correlated) with Fiera Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiera Capital has no effect on the direction of State Street i.e., State Street and Fiera Capital go up and down completely randomly.
Pair Corralation between State Street and Fiera Capital
Considering the 90-day investment horizon State Street Corp is expected to generate 0.51 times more return on investment than Fiera Capital. However, State Street Corp is 1.96 times less risky than Fiera Capital. It trades about 0.22 of its potential returns per unit of risk. Fiera Capital is currently generating about 0.04 per unit of risk. If you would invest 9,298 in State Street Corp on August 27, 2024 and sell it today you would earn a total of 581.00 from holding State Street Corp or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 85.71% |
| Values | Daily Returns |
State Street Corp vs. Fiera Capital
Performance |
| Timeline |
| State Street Corp |
| Fiera Capital |
State Street and Fiera Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Fiera Capital
The main advantage of trading using opposite State Street and Fiera Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Fiera Capital 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 Fiera Capital will offset losses from the drop in Fiera Capital's long position.| State Street vs. Northern Trust | State Street vs. Franklin Resources | State Street vs. Invesco Plc | State Street vs. T Rowe Price |
| Fiera Capital vs. AGF Management Limited | Fiera Capital vs. Azimut Holding SpA | Fiera Capital vs. Ameritrans Capital Corp | Fiera Capital vs. Elysee Development Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |