Correlation Between Aneka Tambang and Fisher Paykel
Can any of the company-specific risk be diversified away by investing in both Aneka Tambang 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 Aneka Tambang and Fisher Paykel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aneka Tambang Tbk and Fisher Paykel Healthcare, you can compare the effects of market volatilities on Aneka Tambang 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 Aneka Tambang with a short position of Fisher Paykel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aneka Tambang and Fisher Paykel.
Diversification Opportunities for Aneka Tambang and Fisher Paykel
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aneka and Fisher is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aneka Tambang Tbk 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 Aneka Tambang 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 Aneka Tambang Tbk 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 Aneka Tambang i.e., Aneka Tambang and Fisher Paykel go up and down completely randomly.
Pair Corralation between Aneka Tambang and Fisher Paykel
Assuming the 90 days trading horizon Aneka Tambang Tbk is expected to under-perform the Fisher Paykel. But the stock apears to be less risky and, when comparing its historical volatility, Aneka Tambang Tbk is 1.4 times less risky than Fisher Paykel. The stock trades about -0.03 of its potential returns per unit of risk. The Fisher Paykel Healthcare is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,124 in Fisher Paykel Healthcare on September 2, 2024 and sell it today you would earn a total of 1,328 from holding Fisher Paykel Healthcare or generate 62.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aneka Tambang Tbk vs. Fisher Paykel Healthcare
Performance |
| Timeline |
| Aneka Tambang Tbk |
| Fisher Paykel Healthcare |
Aneka Tambang and Fisher Paykel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aneka Tambang and Fisher Paykel
The main advantage of trading using opposite Aneka Tambang and Fisher Paykel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aneka Tambang 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.| Aneka Tambang vs. Bio Gene Technology | Aneka Tambang vs. MFF Capital Investments | Aneka Tambang vs. Auctus Alternative Investments | Aneka Tambang vs. ABACUS STORAGE KING |
| Fisher Paykel vs. Jupiter Energy | Fisher Paykel vs. WA1 Resources | Fisher Paykel vs. Cooper Metals | Fisher Paykel vs. OD6 Metals |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |