Correlation Between Fiera Capital and Hercules Metals
Can any of the company-specific risk be diversified away by investing in both Fiera Capital and Hercules Metals 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 Fiera Capital and Hercules Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiera Capital and Hercules Metals Corp, you can compare the effects of market volatilities on Fiera Capital and Hercules Metals 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 Fiera Capital with a short position of Hercules Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiera Capital and Hercules Metals.
Diversification Opportunities for Fiera Capital and Hercules Metals
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fiera and Hercules is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and Hercules Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hercules Metals Corp and Fiera Capital 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 Fiera Capital are associated (or correlated) with Hercules Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hercules Metals Corp has no effect on the direction of Fiera Capital i.e., Fiera Capital and Hercules Metals go up and down completely randomly.
Pair Corralation between Fiera Capital and Hercules Metals
Assuming the 90 days trading horizon Fiera Capital is expected to generate 0.46 times more return on investment than Hercules Metals. However, Fiera Capital is 2.17 times less risky than Hercules Metals. It trades about 0.1 of its potential returns per unit of risk. Hercules Metals Corp is currently generating about 0.0 per unit of risk. If you would invest 770.00 in Fiera Capital on September 23, 2024 and sell it today you would earn a total of 114.00 from holding Fiera Capital or generate 14.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fiera Capital vs. Hercules Metals Corp
Performance |
Timeline |
Fiera Capital |
Hercules Metals Corp |
Fiera Capital and Hercules Metals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fiera Capital and Hercules Metals
The main advantage of trading using opposite Fiera Capital and Hercules Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiera Capital position performs unexpectedly, Hercules Metals 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 Hercules Metals will offset losses from the drop in Hercules Metals' long position.Fiera Capital vs. Berkshire Hathaway CDR | Fiera Capital vs. JPMorgan Chase Co | Fiera Capital vs. Bank of America | Fiera Capital vs. Alphabet Inc CDR |
Hercules Metals vs. CI Financial Corp | Hercules Metals vs. Laurentian Bank | Hercules Metals vs. Canadian Imperial Bank | Hercules Metals vs. Talon Metals 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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