Correlation Between Fiera Capital and Equitable

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

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

Diversification Opportunities for Fiera Capital and Equitable

-0.21

Correlation Coefficient

Fiera Capital  Equitable

Very good diversification

The 3 months correlation between Fiera and Equitable is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and Equitable Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Group 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 Equitable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Group has no effect on the direction of Fiera Capital i.e., Fiera Capital and Equitable go up and down completely randomly.

Pair Corralation between Fiera Capital and Equitable

Assuming the 90 days trading horizon Fiera Capital is expected to under-perform the Equitable. In addition to that, Fiera Capital is 1.19 times more volatile than Equitable Group. It trades about -0.31 of its total potential returns per unit of risk. Equitable Group is currently generating about -0.08 per unit of volatility. If you would invest  11,125  in Equitable Group on December 2, 2024 and sell it today you would lose (1,015) from holding Equitable Group or give up 9.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Fiera Capital  vs.  Equitable Group

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. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Equitable Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Equitable Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental drivers remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Fiera Capital and Equitable

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

The idea behind Fiera Capital and Equitable Group 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.