Correlation Between Fisher Investments and College Retirement

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

By analyzing existing cross correlation between Fisher Large Cap and College Retirement Equities, you can compare the effects of market volatilities on Fisher Investments and College Retirement 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 College Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Investments and College Retirement.

Diversification Opportunities for Fisher Investments and College Retirement

0.71

Correlation Coefficient

Fisher Investments  College Retirement

Poor diversification

The 3 months correlation between Fisher and College is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Large Cap and College Retirement Equities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on College Retirement 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 Large Cap are associated (or correlated) with College Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of College Retirement has no effect on the direction of Fisher Investments i.e., Fisher Investments and College Retirement go up and down completely randomly.

Pair Corralation between Fisher Investments and College Retirement

Assuming the 90 days horizon Fisher Investments is expected to generate 5.54 times less return on investment than College Retirement. In addition to that, Fisher Investments is 1.09 times more volatile than College Retirement Equities. It trades about 0.01 of its total potential returns per unit of risk. College Retirement Equities is currently generating about 0.08 per unit of volatility. If you would invest  49,069  in College Retirement Equities on October 8, 2024 and sell it today you would earn a total of  1,960  from holding College Retirement Equities or generate 3.99% return on investment over 90 days.

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

Fisher Large Cap  vs.  College Retirement Equities

Fisher Investments

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fisher Large Cap are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Fisher Investments is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

College Retirement

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in College Retirement Equities are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, College Retirement 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 College Retirement

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

The idea behind Fisher Large Cap and College Retirement Equities 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.