Correlation Between Fisher Paykel and Pointsbet Holdings
Can any of the company-specific risk be diversified away by investing in both Fisher Paykel and Pointsbet Holdings 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 Pointsbet Holdings 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 Pointsbet Holdings, you can compare the effects of market volatilities on Fisher Paykel and Pointsbet Holdings 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 Pointsbet Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Paykel and Pointsbet Holdings.
Diversification Opportunities for Fisher Paykel and Pointsbet Holdings
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fisher and Pointsbet is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Paykel Healthcare and Pointsbet Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pointsbet Holdings 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 Pointsbet Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pointsbet Holdings has no effect on the direction of Fisher Paykel i.e., Fisher Paykel and Pointsbet Holdings go up and down completely randomly.
Pair Corralation between Fisher Paykel and Pointsbet Holdings
Assuming the 90 days trading horizon Fisher Paykel Healthcare is expected to under-perform the Pointsbet Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Fisher Paykel Healthcare is 2.79 times less risky than Pointsbet Holdings. The stock trades about -0.05 of its potential returns per unit of risk. The Pointsbet Holdings is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 94.00 in Pointsbet Holdings on October 15, 2024 and sell it today you would earn a total of 7.00 from holding Pointsbet Holdings or generate 7.45% 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. Pointsbet Holdings
Performance |
| Timeline |
| Fisher Paykel Healthcare |
| Pointsbet Holdings |
Fisher Paykel and Pointsbet Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Paykel and Pointsbet Holdings
The main advantage of trading using opposite Fisher Paykel and Pointsbet Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Paykel position performs unexpectedly, Pointsbet Holdings 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 Pointsbet Holdings will offset losses from the drop in Pointsbet Holdings' long position.| Fisher Paykel vs. Carnegie Clean Energy | Fisher Paykel vs. Cleanaway Waste Management | Fisher Paykel vs. Sandon Capital Investments | Fisher Paykel vs. Flagship Investments |
| Pointsbet Holdings vs. Global Health | Pointsbet Holdings vs. EVE Health Group | Pointsbet Holdings vs. Regis Healthcare | Pointsbet Holdings 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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