Correlation Between Fisher Paykel and Aeon Metals
Can any of the company-specific risk be diversified away by investing in both Fisher Paykel and Aeon Metals 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 Fisher Paykel and Aeon Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fisher Paykel Healthcare and Aeon Metals, you can compare the effects of market volatilities on Fisher Paykel and Aeon Metals 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 Fisher Paykel with a short position of Aeon Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Paykel and Aeon Metals.
Diversification Opportunities for Fisher Paykel and Aeon Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fisher and Aeon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Paykel Healthcare and Aeon Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon Metals and Fisher Paykel 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 Fisher Paykel Healthcare are associated (or correlated) with Aeon Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon Metals has no effect on the direction of Fisher Paykel i.e., Fisher Paykel and Aeon Metals go up and down completely randomly.
Pair Corralation between Fisher Paykel and Aeon Metals
If you would invest 3,277 in Fisher Paykel Healthcare on August 30, 2024 and sell it today you would earn a total of 108.00 from holding Fisher Paykel Healthcare or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Paykel Healthcare vs. Aeon Metals
Performance |
| Timeline |
| Fisher Paykel Healthcare |
| Aeon Metals |
Fisher Paykel and Aeon Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Paykel and Aeon Metals
The main advantage of trading using opposite Fisher Paykel and Aeon Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Paykel position performs unexpectedly, Aeon Metals 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 Aeon Metals will offset losses from the drop in Aeon Metals' long position.| Fisher Paykel vs. Aneka Tambang Tbk | Fisher Paykel vs. Macquarie Group | Fisher Paykel vs. Macquarie Group Ltd | Fisher Paykel vs. Challenger |
| Aeon Metals vs. Northern Star Resources | Aeon Metals vs. Evolution Mining | Aeon Metals vs. Bluescope Steel | Aeon Metals vs. Sandfire Resources NL |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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