Correlation Between Curasset Capital and Fisher Fixed

Can any of the company-specific risk be diversified away by investing in both Curasset Capital and Fisher Fixed 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 Curasset Capital and Fisher Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Curasset Capital Management and Fisher Fixed Income, you can compare the effects of market volatilities on Curasset Capital and Fisher Fixed 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 Curasset Capital with a short position of Fisher Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curasset Capital and Fisher Fixed.

Diversification Opportunities for Curasset Capital and Fisher Fixed

1.0

Correlation Coefficient

Curasset Capital  Fisher Fixed

No risk reduction

The 3 months correlation between Curasset and Fisher is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Curasset Capital Management and Fisher Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Fixed Income and Curasset 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 Curasset Capital Management are associated (or correlated) with Fisher Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Fixed Income has no effect on the direction of Curasset Capital i.e., Curasset Capital and Fisher Fixed go up and down completely randomly.

Pair Corralation between Curasset Capital and Fisher Fixed

Assuming the 90 days horizon Curasset Capital is expected to generate 1.14 times less return on investment than Fisher Fixed. But when comparing it to its historical volatility, Curasset Capital Management is 1.12 times less risky than Fisher Fixed. It trades about 0.17 of its potential returns per unit of risk. Fisher Fixed Income is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  855.00  in Fisher Fixed Income on December 22, 2024 and sell it today you would earn a total of  27.00  from holding Fisher Fixed Income or generate 3.16% return on investment over 90 days.

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

Curasset Capital Management  vs.  Fisher Fixed Income

Curasset Capital Man

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Curasset Capital Management are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Curasset Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fisher Fixed Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fisher Fixed Income are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Fisher Fixed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Curasset Capital and Fisher Fixed

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

The idea behind Curasset Capital Management and Fisher Fixed Income 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.