Correlation Between Fiera Capital and Flow Capital

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

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

Diversification Opportunities for Fiera Capital and Flow Capital

0.85

Correlation Coefficient

Fiera Capital  Flow Capital

Very poor diversification

The 3 months correlation between Fiera and Flow is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and Flow Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Capital 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 Flow Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Capital Corp has no effect on the direction of Fiera Capital i.e., Fiera Capital and Flow Capital go up and down completely randomly.

Pair Corralation between Fiera Capital and Flow Capital

Assuming the 90 days horizon Fiera Capital is expected to under-perform the Flow Capital. In addition to that, Fiera Capital is 1.34 times more volatile than Flow Capital Corp. It trades about -0.24 of its total potential returns per unit of risk. Flow Capital Corp is currently generating about -0.13 per unit of volatility. If you would invest  60.00  in Flow Capital Corp on December 28, 2024 and sell it today you would lose (8.00) from holding Flow Capital Corp or give up 13.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.36%
Values	Daily Returns

Fiera Capital  vs.  Flow Capital Corp

Fiera Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fiera Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Flow Capital Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flow Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Fiera Capital and Flow Capital

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

The idea behind Fiera Capital and Flow Capital Corp 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.

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 Stocks Directory module to find actively traded stocks across global markets.