Correlation Between SPASX Dividend and Fisher Paykel
Can any of the company-specific risk be diversified away by investing in both SPASX Dividend 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 SPASX Dividend and Fisher Paykel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPASX Dividend Opportunities and Fisher Paykel Healthcare, you can compare the effects of market volatilities on SPASX Dividend 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 SPASX Dividend with a short position of Fisher Paykel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPASX Dividend and Fisher Paykel.
Diversification Opportunities for SPASX Dividend and Fisher Paykel
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPASX and Fisher is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SPASX Dividend Opportunities 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 SPASX Dividend 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 SPASX Dividend Opportunities 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 SPASX Dividend i.e., SPASX Dividend and Fisher Paykel go up and down completely randomly.
Pair Corralation between SPASX Dividend and Fisher Paykel
Assuming the 90 days trading horizon SPASX Dividend is expected to generate 1.59 times less return on investment than Fisher Paykel. But when comparing it to its historical volatility, SPASX Dividend Opportunities is 2.23 times less risky than Fisher Paykel. It trades about 0.05 of its potential returns per unit of risk. Fisher Paykel Healthcare is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,373 in Fisher Paykel Healthcare on August 28, 2024 and sell it today you would earn a total of 30.00 from holding Fisher Paykel Healthcare or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPASX Dividend Opportunities vs. Fisher Paykel Healthcare
Performance |
| Timeline |
SPASX Dividend and Fisher Paykel Volatility Contrast
Predicted Return Density |
| Returns |
SPASX Dividend Opportunities
Pair trading matchups for SPASX Dividend
Fisher Paykel Healthcare
Pair trading matchups for Fisher Paykel
Pair Trading with SPASX Dividend and Fisher Paykel
The main advantage of trading using opposite SPASX Dividend and Fisher Paykel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPASX Dividend 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.| SPASX Dividend vs. Red Hill Iron | SPASX Dividend vs. Ainsworth Game Technology | SPASX Dividend vs. Champion Iron | SPASX Dividend vs. Autosports Group |
| Fisher Paykel vs. Red Hill Iron | Fisher Paykel vs. Black Rock Mining | Fisher Paykel vs. Legacy Iron Ore | Fisher Paykel vs. Ironbark Capital |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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