Correlation Between Alaris Equity and Fiera Capital

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

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

Diversification Opportunities for Alaris Equity and Fiera Capital

0.8

Correlation Coefficient

Alaris Equity  Fiera Capital

Very poor diversification

The 3 months correlation between Alaris and Fiera is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Alaris Equity Partners and Fiera Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital and Alaris Equity 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 Alaris Equity Partners 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 Alaris Equity i.e., Alaris Equity and Fiera Capital go up and down completely randomly.

Pair Corralation between Alaris Equity and Fiera Capital

Assuming the 90 days trading horizon Alaris Equity is expected to generate 4.23 times less return on investment than Fiera Capital. But when comparing it to its historical volatility, Alaris Equity Partners is 1.74 times less risky than Fiera Capital. It trades about 0.04 of its potential returns per unit of risk. Fiera Capital is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  610.00  in Fiera Capital on April 25, 2025 and sell it today you would earn a total of  77.00  from holding Fiera Capital or generate 12.62% return on investment over 90 days.

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

Alaris Equity Partners  vs.  Fiera Capital

Alaris Equity Partners

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alaris Equity Partners are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Alaris Equity is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Fiera Capital

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fiera Capital are ranked lower than 7 (%) 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 Alaris Equity and Fiera Capital

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

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..