Correlation Between Fisher Paykel and Regis Healthcare
Can any of the company-specific risk be diversified away by investing in both Fisher Paykel and Regis Healthcare 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 Regis Healthcare 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 Regis Healthcare, you can compare the effects of market volatilities on Fisher Paykel and Regis Healthcare 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 Regis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Paykel and Regis Healthcare.
Diversification Opportunities for Fisher Paykel and Regis Healthcare
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fisher and Regis is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Paykel Healthcare and Regis Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis Healthcare 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 Regis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Healthcare has no effect on the direction of Fisher Paykel i.e., Fisher Paykel and Regis Healthcare go up and down completely randomly.
Pair Corralation between Fisher Paykel and Regis Healthcare
Assuming the 90 days trading horizon Fisher Paykel Healthcare is expected to generate 0.71 times more return on investment than Regis Healthcare. However, Fisher Paykel Healthcare is 1.41 times less risky than Regis Healthcare. It trades about 0.04 of its potential returns per unit of risk. Regis Healthcare is currently generating about 0.02 per unit of risk. If you would invest 3,408 in Fisher Paykel Healthcare on September 20, 2024 and sell it today you would earn a total of 43.00 from holding Fisher Paykel Healthcare or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Paykel Healthcare vs. Regis Healthcare
Performance |
| Timeline |
| Fisher Paykel Healthcare |
| Regis Healthcare |
Fisher Paykel and Regis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Paykel and Regis Healthcare
The main advantage of trading using opposite Fisher Paykel and Regis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Paykel position performs unexpectedly, Regis Healthcare 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 Regis Healthcare will offset losses from the drop in Regis Healthcare's long position.| Fisher Paykel vs. Macquarie Group | Fisher Paykel vs. Rio Tinto | Fisher Paykel vs. CSL | Fisher Paykel vs. Commonwealth Bank of |
| Regis Healthcare vs. EP Financial Group | Regis Healthcare vs. BKI Investment | Regis Healthcare vs. Pioneer Credit | Regis Healthcare vs. Magellan Financial Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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