Correlation Between Fiera Capital and Bce
Can any of the company-specific risk be diversified away by investing in both Fiera Capital and Bce 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 Bce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiera Capital and Bce Inc Pref, you can compare the effects of market volatilities on Fiera Capital and Bce 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 Bce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiera Capital and Bce.
Diversification Opportunities for Fiera Capital and Bce
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fiera and Bce is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and Bce Inc Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bce Inc Pref 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 Bce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bce Inc Pref has no effect on the direction of Fiera Capital i.e., Fiera Capital and Bce go up and down completely randomly.
Pair Corralation between Fiera Capital and Bce
Assuming the 90 days trading horizon Fiera Capital is expected to generate 3.64 times more return on investment than Bce. However, Fiera Capital is 3.64 times more volatile than Bce Inc Pref. It trades about 0.03 of its potential returns per unit of risk. Bce Inc Pref is currently generating about 0.02 per unit of risk. If you would invest 693.00 in Fiera Capital on September 24, 2024 and sell it today you would earn a total of 191.00 from holding Fiera Capital or generate 27.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Fiera Capital vs. Bce Inc Pref
Performance |
Timeline |
Fiera Capital |
Bce Inc Pref |
Fiera Capital and Bce Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fiera Capital and Bce
The main advantage of trading using opposite Fiera Capital and Bce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiera Capital position performs unexpectedly, Bce 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 Bce will offset losses from the drop in Bce's long position.Fiera Capital vs. Timbercreek Financial Corp | Fiera Capital vs. Alaris Equity Partners | Fiera Capital vs. Slate Grocery REIT | Fiera Capital vs. NorthWest Healthcare Properties |
Bce vs. Forsys Metals Corp | Bce vs. Rubicon Organics | Bce vs. Electra Battery Materials | Bce vs. Lion One Metals |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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