Correlation Between 88 Energy and Fisher Paykel
Can any of the company-specific risk be diversified away by investing in both 88 Energy and Fisher Paykel 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 88 Energy and Fisher Paykel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 88 Energy and Fisher Paykel Healthcare, you can compare the effects of market volatilities on 88 Energy and Fisher Paykel 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 88 Energy with a short position of Fisher Paykel. Check out your portfolio center. Please also check ongoing floating volatility patterns of 88 Energy and Fisher Paykel.
Diversification Opportunities for 88 Energy and Fisher Paykel
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 88E and Fisher is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding 88 Energy and Fisher Paykel Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Paykel Healthcare and 88 Energy 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 88 Energy are associated (or correlated) with Fisher Paykel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Paykel Healthcare has no effect on the direction of 88 Energy i.e., 88 Energy and Fisher Paykel go up and down completely randomly.
Pair Corralation between 88 Energy and Fisher Paykel
Assuming the 90 days trading horizon 88 Energy is expected to generate 20.84 times more return on investment than Fisher Paykel. However, 88 Energy is 20.84 times more volatile than Fisher Paykel Healthcare. It trades about 0.16 of its potential returns per unit of risk. Fisher Paykel Healthcare is currently generating about -0.02 per unit of risk. If you would invest 0.20 in 88 Energy on September 12, 2024 and sell it today you would earn a total of 0.00 from holding 88 Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
88 Energy vs. Fisher Paykel Healthcare
Performance |
| Timeline |
| 88 Energy |
| Fisher Paykel Healthcare |
88 Energy and Fisher Paykel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 88 Energy and Fisher Paykel
The main advantage of trading using opposite 88 Energy and Fisher Paykel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 88 Energy position performs unexpectedly, Fisher Paykel 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 Paykel will offset losses from the drop in Fisher Paykel's long position.| 88 Energy vs. Duxton Broadacre Farms | 88 Energy vs. Aeon Metals | 88 Energy vs. DY6 Metals | 88 Energy vs. Group 6 Metals |
| Fisher Paykel vs. CSL | Fisher Paykel vs. Tamawood | Fisher Paykel vs. Cochlear | Fisher Paykel vs. Rea Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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