Correlation Between Flagship Investments and Fisher Paykel
Can any of the company-specific risk be diversified away by investing in both Flagship Investments and Fisher Paykel 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 Flagship Investments and Fisher Paykel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flagship Investments and Fisher Paykel Healthcare, you can compare the effects of market volatilities on Flagship Investments and Fisher Paykel 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 Flagship Investments with a short position of Fisher Paykel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flagship Investments and Fisher Paykel.
Diversification Opportunities for Flagship Investments and Fisher Paykel
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flagship and Fisher is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Flagship Investments and Fisher Paykel Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Paykel Healthcare and Flagship Investments 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 Flagship Investments are associated (or correlated) with Fisher Paykel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Paykel Healthcare has no effect on the direction of Flagship Investments i.e., Flagship Investments and Fisher Paykel go up and down completely randomly.
Pair Corralation between Flagship Investments and Fisher Paykel
Assuming the 90 days trading horizon Flagship Investments is expected to generate 1.39 times less return on investment than Fisher Paykel. But when comparing it to its historical volatility, Flagship Investments is 1.07 times less risky than Fisher Paykel. It trades about 0.05 of its potential returns per unit of risk. Fisher Paykel Healthcare is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,297 in Fisher Paykel Healthcare on October 14, 2024 and sell it today you would earn a total of 1,133 from holding Fisher Paykel Healthcare or generate 49.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flagship Investments vs. Fisher Paykel Healthcare
Performance |
| Timeline |
| Flagship Investments |
| Fisher Paykel Healthcare |
Flagship Investments and Fisher Paykel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flagship Investments and Fisher Paykel
The main advantage of trading using opposite Flagship Investments and Fisher Paykel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flagship Investments position performs unexpectedly, Fisher Paykel 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 Fisher Paykel will offset losses from the drop in Fisher Paykel's long position.| Flagship Investments vs. AiMedia Technologies | Flagship Investments vs. Bio Gene Technology | Flagship Investments vs. oOhMedia | Flagship Investments vs. Infomedia |
| Fisher Paykel vs. Carnegie Clean Energy | Fisher Paykel vs. Cleanaway Waste Management | Fisher Paykel vs. Sandon Capital Investments | Fisher Paykel vs. Flagship Investments |
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
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |