Correlation Between Fisher Paykel and Summit Resources
Can any of the company-specific risk be diversified away by investing in both Fisher Paykel and Summit Resources 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 Summit Resources 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 Summit Resources Limited, you can compare the effects of market volatilities on Fisher Paykel and Summit Resources 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 Summit Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Paykel and Summit Resources.
Diversification Opportunities for Fisher Paykel and Summit Resources
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fisher and Summit is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Paykel Healthcare and Summit Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Resources 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 Summit Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Resources has no effect on the direction of Fisher Paykel i.e., Fisher Paykel and Summit Resources go up and down completely randomly.
Pair Corralation between Fisher Paykel and Summit Resources
Assuming the 90 days trading horizon Fisher Paykel Healthcare is expected to generate 0.16 times more return on investment than Summit Resources. However, Fisher Paykel Healthcare is 6.33 times less risky than Summit Resources. It trades about 0.03 of its potential returns per unit of risk. Summit Resources Limited is currently generating about -0.09 per unit of risk. If you would invest 3,373 in Fisher Paykel Healthcare on August 29, 2024 and sell it today you would earn a total of 30.00 from holding Fisher Paykel Healthcare or generate 0.89% 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. Summit Resources Limited
Performance |
| Timeline |
| Fisher Paykel Healthcare |
| Summit Resources |
Fisher Paykel and Summit Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Paykel and Summit Resources
The main advantage of trading using opposite Fisher Paykel and Summit Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Paykel position performs unexpectedly, Summit Resources 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 Summit Resources will offset losses from the drop in Summit Resources' long position.| Fisher Paykel vs. Summit Resources Limited | Fisher Paykel vs. Champion Iron | Fisher Paykel vs. Ridley | Fisher Paykel vs. Peel Mining |
| Summit Resources vs. Northern Star Resources | Summit Resources vs. Evolution Mining | Summit Resources vs. Bluescope Steel | Summit Resources vs. Sandfire Resources NL |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |