Correlation Between Fisher Investments and Fisher Investments

Can any of the company-specific risk be diversified away by investing in both Fisher Investments and Fisher Investments 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 Fisher Investments 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 Fisher Fixed Income, you can compare the effects of market volatilities on Fisher Investments and Fisher Investments 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 Fisher Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Investments and Fisher Investments.

Diversification Opportunities for Fisher Investments and Fisher Investments

0.66

Correlation Coefficient

Fisher Investments  Fisher Investments

Poor diversification

The 3 months correlation between Fisher and Fisher is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Small Cap and Fisher Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Fixed Income 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 Fisher Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Fixed Income has no effect on the direction of Fisher Investments i.e., Fisher Investments and Fisher Investments go up and down completely randomly.

Pair Corralation between Fisher Investments and Fisher Investments

Assuming the 90 days horizon Fisher Small Cap is expected to generate 3.44 times more return on investment than Fisher Investments. However, Fisher Investments is 3.44 times more volatile than Fisher Fixed Income. It trades about 0.03 of its potential returns per unit of risk. Fisher Fixed Income is currently generating about 0.05 per unit of risk. If you would invest  1,079  in Fisher Small Cap on November 19, 2024 and sell it today you would earn a total of  165.00  from holding Fisher Small Cap or generate 15.29% return on investment over 90 days.

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

Fisher Small Cap  vs.  Fisher Fixed Income

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 fairly strong fundamental indicators, Fisher Investments is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fisher Fixed Income

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Fisher Fixed Income are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Fisher Investments 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 Fisher Investments

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

The idea behind Fisher Small Cap and Fisher Fixed Income 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.