Correlation Between Morien Resources and Fiera Capital

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

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

Diversification Opportunities for Morien Resources and Fiera Capital

-0.35

Correlation Coefficient

Morien Resources  Fiera Capital

Very good diversification

The 3 months correlation between Morien and Fiera is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Morien Resources Corp and Fiera Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital and Morien Resources 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 Morien Resources Corp are associated (or correlated) with Fiera Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiera Capital has no effect on the direction of Morien Resources i.e., Morien Resources and Fiera Capital go up and down completely randomly.

Pair Corralation between Morien Resources and Fiera Capital

Assuming the 90 days horizon Morien Resources Corp is expected to under-perform the Fiera Capital. In addition to that, Morien Resources is 2.35 times more volatile than Fiera Capital. It trades about -0.07 of its total potential returns per unit of risk. Fiera Capital is currently generating about 0.18 per unit of volatility. If you would invest  737.00  in Fiera Capital on September 13, 2024 and sell it today you would earn a total of  204.00  from holding Fiera Capital or generate 27.68% return on investment over 90 days.

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

Morien Resources Corp  vs.  Fiera Capital

Morien Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Morien Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Fiera Capital

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fiera Capital are ranked lower than 14 (%) 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.

Pair Trading with Morien Resources and Fiera Capital

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

The idea behind Morien Resources Corp and Fiera Capital 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.