Correlation Between ARN Media and Fisher Paykel
Can any of the company-specific risk be diversified away by investing in both ARN Media 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 ARN Media and Fisher Paykel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ARN Media Limited and Fisher Paykel Healthcare, you can compare the effects of market volatilities on ARN Media 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 ARN Media with a short position of Fisher Paykel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARN Media and Fisher Paykel.
Diversification Opportunities for ARN Media and Fisher Paykel
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ARN and Fisher is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding ARN Media Limited 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 ARN Media 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 ARN Media Limited 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 ARN Media i.e., ARN Media and Fisher Paykel go up and down completely randomly.
Pair Corralation between ARN Media and Fisher Paykel
Assuming the 90 days trading horizon ARN Media Limited is expected to under-perform the Fisher Paykel. In addition to that, ARN Media is 2.39 times more volatile than Fisher Paykel Healthcare. It trades about -0.04 of its total potential returns per unit of risk. Fisher Paykel Healthcare is currently generating about 0.03 per unit of volatility. If you would invest 3,433 in Fisher Paykel Healthcare on October 30, 2024 and sell it today you would earn a total of 42.00 from holding Fisher Paykel Healthcare or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARN Media Limited vs. Fisher Paykel Healthcare
Performance |
| Timeline |
| ARN Media Limited |
| Fisher Paykel Healthcare |
ARN Media and Fisher Paykel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARN Media and Fisher Paykel
The main advantage of trading using opposite ARN Media and Fisher Paykel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARN Media 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.| ARN Media vs. Djerriwarrh Investments | ARN Media vs. Argo Investments | ARN Media vs. Clime Investment Management | ARN Media vs. Sandon Capital Investments |
| Fisher Paykel vs. Farm Pride Foods | Fisher Paykel vs. Perseus Mining | Fisher Paykel vs. Dalaroo Metals | Fisher Paykel vs. Australian Agricultural |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |