Correlation Between Ab Global and Fiera Capital
Can any of the company-specific risk be diversified away by investing in both Ab Global 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 Ab Global and Fiera Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global E and Fiera Capital Global, you can compare the effects of market volatilities on Ab Global 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 Ab Global with a short position of Fiera Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Fiera Capital.
Diversification Opportunities for Ab Global and Fiera Capital
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GCEAX and Fiera is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global E and Fiera Capital Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital Global and Ab Global 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 Ab Global E 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 Global has no effect on the direction of Ab Global i.e., Ab Global and Fiera Capital go up and down completely randomly.
Pair Corralation between Ab Global and Fiera Capital
Assuming the 90 days horizon Ab Global E is expected to generate 1.08 times more return on investment than Fiera Capital. However, Ab Global is 1.08 times more volatile than Fiera Capital Global. It trades about -0.17 of its potential returns per unit of risk. Fiera Capital Global is currently generating about -0.3 per unit of risk. If you would invest 1,634 in Ab Global E on January 19, 2024 and sell it today you would lose (43.00) from holding Ab Global E or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global E vs. Fiera Capital Global
Performance |
| Timeline |
| Ab Global E |
| Fiera Capital Global |
Ab Global and Fiera Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Fiera Capital
The main advantage of trading using opposite Ab Global and Fiera Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global 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.| Ab Global vs. Commonwealth Real Estate | Ab Global vs. Gamco Global Opportunity | Ab Global vs. HUMANA INC | Ab Global vs. Aquagold International |
| Fiera Capital vs. American Funds New | Fiera Capital vs. American Funds New | Fiera Capital vs. New Perspective Fund | Fiera Capital vs. New Perspective Fund |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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