Correlation Between Amani Gold and Fisher Paykel
Can any of the company-specific risk be diversified away by investing in both Amani Gold 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 Amani Gold and Fisher Paykel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amani Gold and Fisher Paykel Healthcare, you can compare the effects of market volatilities on Amani Gold 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 Amani Gold with a short position of Fisher Paykel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amani Gold and Fisher Paykel.
Diversification Opportunities for Amani Gold and Fisher Paykel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amani and Fisher is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amani Gold 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 Amani Gold 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 Amani Gold 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 Amani Gold i.e., Amani Gold and Fisher Paykel go up and down completely randomly.
Pair Corralation between Amani Gold and Fisher Paykel
Assuming the 90 days trading horizon Amani Gold is expected to under-perform the Fisher Paykel. In addition to that, Amani Gold is 1.98 times more volatile than Fisher Paykel Healthcare. It trades about -0.01 of its total potential returns per unit of risk. Fisher Paykel Healthcare is currently generating about 0.07 per unit of volatility. If you would invest 2,136 in Fisher Paykel Healthcare on September 5, 2024 and sell it today you would earn a total of 1,337 from holding Fisher Paykel Healthcare or generate 62.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.6% |
| Values | Daily Returns |
Amani Gold vs. Fisher Paykel Healthcare
Performance |
| Timeline |
| Amani Gold |
| Fisher Paykel Healthcare |
Amani Gold and Fisher Paykel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amani Gold and Fisher Paykel
The main advantage of trading using opposite Amani Gold and Fisher Paykel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amani Gold 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.| Amani Gold vs. Capitol Health | Amani Gold vs. Ora Banda Mining | Amani Gold vs. Talisman Mining | Amani Gold vs. Chalice Mining Limited |
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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 Stocks Directory module to find actively traded stocks across global markets.
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