Correlation Between Fisher Paykel and Dug Technology
Can any of the company-specific risk be diversified away by investing in both Fisher Paykel and Dug Technology 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 Dug Technology 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 Dug Technology, you can compare the effects of market volatilities on Fisher Paykel and Dug Technology 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 Dug Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Paykel and Dug Technology.
Diversification Opportunities for Fisher Paykel and Dug Technology
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fisher and Dug is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Paykel Healthcare and Dug Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dug Technology 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 Dug Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dug Technology has no effect on the direction of Fisher Paykel i.e., Fisher Paykel and Dug Technology go up and down completely randomly.
Pair Corralation between Fisher Paykel and Dug Technology
Assuming the 90 days trading horizon Fisher Paykel is expected to generate 6.25 times less return on investment than Dug Technology. But when comparing it to its historical volatility, Fisher Paykel Healthcare is 2.97 times less risky than Dug Technology. It trades about 0.03 of its potential returns per unit of risk. Dug Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 149.00 in Dug Technology on October 26, 2024 and sell it today you would earn a total of 9.00 from holding Dug Technology or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Paykel Healthcare vs. Dug Technology
Performance |
| Timeline |
| Fisher Paykel Healthcare |
| Dug Technology |
Fisher Paykel and Dug Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Paykel and Dug Technology
The main advantage of trading using opposite Fisher Paykel and Dug Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Paykel position performs unexpectedly, Dug Technology 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 Dug Technology will offset losses from the drop in Dug Technology's long position.| Fisher Paykel vs. Apiam Animal Health | Fisher Paykel vs. Viva Leisure | Fisher Paykel vs. Vitura Health Limited | Fisher Paykel vs. Pure Foods Tasmania |
| Dug Technology vs. Viva Leisure | Dug Technology vs. Homeco Daily Needs | Dug Technology vs. Epsilon Healthcare | Dug Technology vs. Fisher Paykel Healthcare |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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