Correlation Between Fisher Paykel and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Fisher Paykel and GreenX 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 GreenX 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 GreenX Metals, you can compare the effects of market volatilities on Fisher Paykel and GreenX 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 GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Paykel and GreenX Metals.
Diversification Opportunities for Fisher Paykel and GreenX Metals
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fisher and GreenX is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Paykel Healthcare and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX 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 GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Fisher Paykel i.e., Fisher Paykel and GreenX Metals go up and down completely randomly.
Pair Corralation between Fisher Paykel and GreenX Metals
Assuming the 90 days trading horizon Fisher Paykel Healthcare is expected to generate 0.57 times more return on investment than GreenX Metals. However, Fisher Paykel Healthcare is 1.75 times less risky than GreenX Metals. It trades about 0.15 of its potential returns per unit of risk. GreenX Metals is currently generating about -0.27 per unit of risk. If you would invest 3,306 in Fisher Paykel Healthcare on September 4, 2024 and sell it today you would earn a total of 157.00 from holding Fisher Paykel Healthcare or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Paykel Healthcare vs. GreenX Metals
Performance |
| Timeline |
| Fisher Paykel Healthcare |
| GreenX Metals |
Fisher Paykel and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Paykel and GreenX Metals
The main advantage of trading using opposite Fisher Paykel and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Paykel position performs unexpectedly, GreenX 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| Fisher Paykel vs. Energy Resources | Fisher Paykel vs. 88 Energy | Fisher Paykel vs. Amani Gold | Fisher Paykel vs. A1 Investments Resources |
| GreenX Metals vs. Northern Star Resources | GreenX Metals vs. Evolution Mining | GreenX Metals vs. Sandfire Resources NL | GreenX Metals vs. Aneka Tambang Tbk |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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