Correlation Between Bendigo and Fisher Paykel
Can any of the company-specific risk be diversified away by investing in both Bendigo 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 Bendigo and Fisher Paykel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bendigo and Adelaide and Fisher Paykel Healthcare, you can compare the effects of market volatilities on Bendigo 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 Bendigo with a short position of Fisher Paykel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bendigo and Fisher Paykel.
Diversification Opportunities for Bendigo and Fisher Paykel
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bendigo and Fisher is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Bendigo and Adelaide 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 Bendigo 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 Bendigo and Adelaide 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 Bendigo i.e., Bendigo and Fisher Paykel go up and down completely randomly.
Pair Corralation between Bendigo and Fisher Paykel
Assuming the 90 days trading horizon Bendigo and Adelaide is expected to generate 0.32 times more return on investment than Fisher Paykel. However, Bendigo and Adelaide is 3.1 times less risky than Fisher Paykel. It trades about 0.04 of its potential returns per unit of risk. Fisher Paykel Healthcare is currently generating about -0.04 per unit of risk. If you would invest 10,363 in Bendigo and Adelaide on September 14, 2024 and sell it today you would earn a total of 49.00 from holding Bendigo and Adelaide or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bendigo and Adelaide vs. Fisher Paykel Healthcare
Performance |
| Timeline |
| Bendigo and Adelaide |
| Fisher Paykel Healthcare |
Bendigo and Fisher Paykel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bendigo and Fisher Paykel
The main advantage of trading using opposite Bendigo and Fisher Paykel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bendigo 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.| Bendigo vs. Fisher Paykel Healthcare | Bendigo vs. Dalaroo Metals | Bendigo vs. Ramsay Health Care | Bendigo vs. Collins Foods |
| Fisher Paykel vs. Latitude Financial Services | Fisher Paykel vs. Seven West Media | Fisher Paykel vs. National Storage REIT | Fisher Paykel vs. Finexia Financial 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |