Correlation Between Fiera Capital and Quarterhill

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

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

Diversification Opportunities for Fiera Capital and Quarterhill

-0.02

Correlation Coefficient

Fiera Capital  Quarterhill

Good diversification

The 3 months correlation between Fiera and Quarterhill is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and Quarterhill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quarterhill 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 Quarterhill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quarterhill has no effect on the direction of Fiera Capital i.e., Fiera Capital and Quarterhill go up and down completely randomly.

Pair Corralation between Fiera Capital and Quarterhill

Assuming the 90 days trading horizon Fiera Capital is expected to generate 0.75 times more return on investment than Quarterhill. However, Fiera Capital is 1.34 times less risky than Quarterhill. It trades about 0.15 of its potential returns per unit of risk. Quarterhill is currently generating about 0.07 per unit of risk. If you would invest  740.00  in Fiera Capital on September 16, 2024 and sell it today you would earn a total of  176.00  from holding Fiera Capital or generate 23.78% return on investment over 90 days.

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

Fiera Capital  vs.  Quarterhill

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.

Quarterhill

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Quarterhill are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Quarterhill displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fiera Capital and Quarterhill

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

The idea behind Fiera Capital and Quarterhill 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.