Correlation Between Corus Entertainment and Fiera Capital

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Can any of the company-specific risk be diversified away by investing in both Corus Entertainment 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 Corus Entertainment and Fiera Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corus Entertainment and Fiera Capital Global, you can compare the effects of market volatilities on Corus Entertainment 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 Corus Entertainment with a short position of Fiera Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corus Entertainment and Fiera Capital.

Diversification Opportunities for Corus Entertainment and Fiera Capital

-0.33
  Correlation Coefficient

Very good diversification

The 3 months correlation between Corus and Fiera is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Corus Entertainment and Fiera Capital Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital Global and Corus Entertainment 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 Corus Entertainment 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 Global has no effect on the direction of Corus Entertainment i.e., Corus Entertainment and Fiera Capital go up and down completely randomly.

Pair Corralation between Corus Entertainment and Fiera Capital

Assuming the 90 days trading horizon Corus Entertainment is expected to under-perform the Fiera Capital. In addition to that, Corus Entertainment is 4.64 times more volatile than Fiera Capital Global. It trades about -0.03 of its total potential returns per unit of risk. Fiera Capital Global is currently generating about 0.19 per unit of volatility. If you would invest  1,936  in Fiera Capital Global on December 29, 2023 and sell it today you would earn a total of  47.00  from holding Fiera Capital Global or generate 2.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Corus Entertainment  vs.  Fiera Capital Global

 Performance 
       Timeline  
Corus Entertainment 

Risk-Adjusted Performance

1 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Corus Entertainment are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating fundamental drivers, Corus Entertainment may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Fiera Capital Global 

Risk-Adjusted Performance

13 of 100

 
Low
 
High
Very Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Fiera Capital Global 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, Fiera Capital may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Corus Entertainment and Fiera Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Corus Entertainment and Fiera Capital

The main advantage of trading using opposite Corus Entertainment and Fiera Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corus Entertainment 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 Corus Entertainment and Fiera Capital Global 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 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.

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