Correlation Between Apexcm Small/mid and Fisher Large

Can any of the company-specific risk be diversified away by investing in both Apexcm Small/mid and Fisher Large 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 Apexcm Small/mid and Fisher Large into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apexcm Smallmid Cap and Fisher Large Cap, you can compare the effects of market volatilities on Apexcm Small/mid and Fisher Large 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 Apexcm Small/mid with a short position of Fisher Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apexcm Small/mid and Fisher Large.

Diversification Opportunities for Apexcm Small/mid and Fisher Large

0.96

Correlation Coefficient

Apexcm Small/mid  Fisher Large

Almost no diversification

The 3 months correlation between Apexcm and Fisher is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Apexcm Smallmid Cap and Fisher Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Large Cap and Apexcm Small/mid 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 Apexcm Smallmid Cap are associated (or correlated) with Fisher Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Large Cap has no effect on the direction of Apexcm Small/mid i.e., Apexcm Small/mid and Fisher Large go up and down completely randomly.

Pair Corralation between Apexcm Small/mid and Fisher Large

Assuming the 90 days horizon Apexcm Smallmid Cap is expected to under-perform the Fisher Large. In addition to that, Apexcm Small/mid is 1.19 times more volatile than Fisher Large Cap. It trades about -0.11 of its total potential returns per unit of risk. Fisher Large Cap is currently generating about -0.08 per unit of volatility. If you would invest  1,790  in Fisher Large Cap on December 20, 2024 and sell it today you would lose (98.00) from holding Fisher Large Cap or give up 5.47% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Apexcm Smallmid Cap  vs.  Fisher Large Cap

Apexcm Smallmid Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apexcm Smallmid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Fisher Large Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fisher Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Fisher Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Apexcm Small/mid and Fisher Large

The main advantage of trading using opposite Apexcm Small/mid and Fisher Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apexcm Small/mid position performs unexpectedly, Fisher Large 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 Large will offset losses from the drop in Fisher Large's long position.

The idea behind Apexcm Smallmid Cap and Fisher Large Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..