Correlation Between Fisher Paykel and Retail Food
Can any of the company-specific risk be diversified away by investing in both Fisher Paykel and Retail Food 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 Retail Food 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 Retail Food Group, you can compare the effects of market volatilities on Fisher Paykel and Retail Food 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 Retail Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Paykel and Retail Food.
Diversification Opportunities for Fisher Paykel and Retail Food
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fisher and Retail is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Paykel Healthcare and Retail Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Food Group 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 Retail Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Food Group has no effect on the direction of Fisher Paykel i.e., Fisher Paykel and Retail Food go up and down completely randomly.
Pair Corralation between Fisher Paykel and Retail Food
Assuming the 90 days trading horizon Fisher Paykel Healthcare is expected to generate 0.31 times more return on investment than Retail Food. However, Fisher Paykel Healthcare is 3.19 times less risky than Retail Food. It trades about -0.11 of its potential returns per unit of risk. Retail Food Group is currently generating about -0.44 per unit of risk. If you would invest 3,462 in Fisher Paykel Healthcare on October 16, 2024 and sell it today you would lose (63.00) from holding Fisher Paykel Healthcare or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Paykel Healthcare vs. Retail Food Group
Performance |
| Timeline |
| Fisher Paykel Healthcare |
| Retail Food Group |
Fisher Paykel and Retail Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Paykel and Retail Food
The main advantage of trading using opposite Fisher Paykel and Retail Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Paykel position performs unexpectedly, Retail Food 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 Retail Food will offset losses from the drop in Retail Food's long position.| Fisher Paykel vs. Carawine Resources Limited | Fisher Paykel vs. Falcon Metals | Fisher Paykel vs. ARN Media Limited | Fisher Paykel vs. Centaurus Metals |
| Retail Food vs. Event Hospitality and | Retail Food vs. Centuria Industrial Reit | Retail Food vs. Sky Metals | Retail Food vs. DY6 Metals |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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