Correlation Between Fisher Paykel and Thorney Technologies
Can any of the company-specific risk be diversified away by investing in both Fisher Paykel and Thorney Technologies 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 Thorney Technologies 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 Thorney Technologies, you can compare the effects of market volatilities on Fisher Paykel and Thorney Technologies 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 Thorney Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Paykel and Thorney Technologies.
Diversification Opportunities for Fisher Paykel and Thorney Technologies
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fisher and Thorney is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Paykel Healthcare and Thorney Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thorney Technologies 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 Thorney Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thorney Technologies has no effect on the direction of Fisher Paykel i.e., Fisher Paykel and Thorney Technologies go up and down completely randomly.
Pair Corralation between Fisher Paykel and Thorney Technologies
If you would invest 3,434 in Fisher Paykel Healthcare on November 7, 2024 and sell it today you would earn a total of 1.00 from holding Fisher Paykel Healthcare or generate 0.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fisher Paykel Healthcare vs. Thorney Technologies
Performance |
| Timeline |
| Fisher Paykel Healthcare |
| Thorney Technologies |
Fisher Paykel and Thorney Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Paykel and Thorney Technologies
The main advantage of trading using opposite Fisher Paykel and Thorney Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Paykel position performs unexpectedly, Thorney Technologies 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 Thorney Technologies will offset losses from the drop in Thorney Technologies' long position.| Fisher Paykel vs. Norfolk Metals | Fisher Paykel vs. Falcon Metals | Fisher Paykel vs. Aurelia Metals | Fisher Paykel vs. ACDC Metals |
| Thorney Technologies vs. Lendlease Group | Thorney Technologies vs. Pure Foods Tasmania | Thorney Technologies vs. Ainsworth Game Technology | Thorney Technologies vs. Clime Investment Management |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |