Correlation Between Fisher Paykel and Microba Life
Can any of the company-specific risk be diversified away by investing in both Fisher Paykel and Microba Life 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 Microba Life 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 Microba Life Sciences, you can compare the effects of market volatilities on Fisher Paykel and Microba Life 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 Microba Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Paykel and Microba Life.
Diversification Opportunities for Fisher Paykel and Microba Life
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fisher and Microba is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Paykel Healthcare and Microba Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microba Life Sciences 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 Microba Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microba Life Sciences has no effect on the direction of Fisher Paykel i.e., Fisher Paykel and Microba Life go up and down completely randomly.
Pair Corralation between Fisher Paykel and Microba Life
Assuming the 90 days trading horizon Fisher Paykel Healthcare is expected to generate 0.45 times more return on investment than Microba Life. However, Fisher Paykel Healthcare is 2.24 times less risky than Microba Life. It trades about 0.03 of its potential returns per unit of risk. Microba Life Sciences is currently generating about -0.03 per unit of risk. If you would invest 3,132 in Fisher Paykel Healthcare on January 10, 2025 and sell it today you would earn a total of 33.00 from holding Fisher Paykel Healthcare or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Paykel Healthcare vs. Microba Life Sciences
Performance |
| Timeline |
| Fisher Paykel Healthcare |
| Microba Life Sciences |
Fisher Paykel and Microba Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Paykel and Microba Life
The main advantage of trading using opposite Fisher Paykel and Microba Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Paykel position performs unexpectedly, Microba Life 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 Microba Life will offset losses from the drop in Microba Life's long position.| Fisher Paykel vs. Austco Healthcare | Fisher Paykel vs. Seven West Media | Fisher Paykel vs. Australian United Investment | Fisher Paykel vs. Lendlease Group |
| Microba Life vs. Aneka Tambang Tbk | Microba Life vs. National Australia Bank | Microba Life vs. Commonwealth Bank of | Microba Life vs. Commonwealth Bank of |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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