Correlation Between Fisher Investments and Blackrock Capital

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

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

Diversification Opportunities for Fisher Investments and Blackrock Capital

0.95

Correlation Coefficient

Fisher Investments  Blackrock Capital

Almost no diversification

The 3 months correlation between Fisher and Blackrock is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Small Cap and Blackrock Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Capital 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 Small Cap are associated (or correlated) with Blackrock Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Capital has no effect on the direction of Fisher Investments i.e., Fisher Investments and Blackrock Capital go up and down completely randomly.

Pair Corralation between Fisher Investments and Blackrock Capital

Assuming the 90 days horizon Fisher Small Cap is expected to under-perform the Blackrock Capital. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fisher Small Cap is 1.29 times less risky than Blackrock Capital. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Blackrock Capital Appreciation is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest  3,739  in Blackrock Capital Appreciation on December 30, 2024 and sell it today you would lose (451.00) from holding Blackrock Capital Appreciation or give up 12.06% of portfolio value over 90 days.

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

Fisher Small Cap  vs.  Blackrock Capital Appreciation

Fisher Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fisher Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Blackrock Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackrock Capital Appreciation has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Fisher Investments and Blackrock Capital

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

The idea behind Fisher Small Cap and Blackrock Capital Appreciation 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.