Correlation Between Fisher Investments and Gmo Resources

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

By analyzing existing cross correlation between Fisher All Foreign and Gmo Resources, you can compare the effects of market volatilities on Fisher Investments and Gmo Resources 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 Fisher Investments with a short position of Gmo Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Investments and Gmo Resources.

Diversification Opportunities for Fisher Investments and Gmo Resources

-0.49

Correlation Coefficient

Fisher Investments  Gmo Resources

Very good diversification

The 3 months correlation between Fisher and Gmo is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Fisher All Foreign and Gmo Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Resources and Fisher Investments 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 Fisher All Foreign are associated (or correlated) with Gmo Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Resources has no effect on the direction of Fisher Investments i.e., Fisher Investments and Gmo Resources go up and down completely randomly.

Pair Corralation between Fisher Investments and Gmo Resources

Assuming the 90 days horizon Fisher All Foreign is expected to generate 0.77 times more return on investment than Gmo Resources. However, Fisher All Foreign is 1.3 times less risky than Gmo Resources. It trades about 0.17 of its potential returns per unit of risk. Gmo Resources is currently generating about -0.03 per unit of risk. If you would invest  1,191  in Fisher All Foreign on December 28, 2024 and sell it today you would earn a total of  124.00  from holding Fisher All Foreign or generate 10.41% return on investment over 90 days.

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

Fisher All Foreign  vs.  Gmo Resources

Fisher All Foreign

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fisher All Foreign are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Fisher Investments may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Gmo Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gmo Resources has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Gmo Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fisher Investments and Gmo Resources

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

The idea behind Fisher All Foreign and Gmo Resources 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.