Correlation Between Fiera Capital and Andlauer Healthcare

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

By analyzing existing cross correlation between Fiera Capital and Andlauer Healthcare Gr, you can compare the effects of market volatilities on Fiera Capital and Andlauer Healthcare 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 Andlauer Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiera Capital and Andlauer Healthcare.

Diversification Opportunities for Fiera Capital and Andlauer Healthcare

0.93

Correlation Coefficient

Fiera Capital  Andlauer Healthcare

Almost no diversification

The 3 months correlation between Fiera and Andlauer is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and Andlauer Healthcare Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andlauer Healthcare 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 Andlauer Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andlauer Healthcare has no effect on the direction of Fiera Capital i.e., Fiera Capital and Andlauer Healthcare go up and down completely randomly.

Pair Corralation between Fiera Capital and Andlauer Healthcare

Assuming the 90 days trading horizon Fiera Capital is expected to under-perform the Andlauer Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Fiera Capital is 1.14 times less risky than Andlauer Healthcare. The stock trades about -0.33 of its potential returns per unit of risk. The Andlauer Healthcare Gr is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  4,219  in Andlauer Healthcare Gr on September 16, 2024 and sell it today you would earn a total of  41.00  from holding Andlauer Healthcare Gr or generate 0.97% return on investment over 90 days.

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

Fiera Capital  vs.  Andlauer Healthcare Gr

Fiera Capital

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fiera Capital are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Fiera Capital displayed solid returns over the last few months and may actually be approaching a breakup point.

Andlauer Healthcare

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Andlauer Healthcare Gr are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Andlauer Healthcare may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Fiera Capital and Andlauer Healthcare

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

The idea behind Fiera Capital and Andlauer Healthcare Gr 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.