Correlation Between Skycity Entertainment and Fisher Paykel
Can any of the company-specific risk be diversified away by investing in both Skycity Entertainment 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 Skycity Entertainment and Fisher Paykel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skycity Entertainment Group and Fisher Paykel Healthcare, you can compare the effects of market volatilities on Skycity Entertainment 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 Skycity Entertainment with a short position of Fisher Paykel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skycity Entertainment and Fisher Paykel.
Diversification Opportunities for Skycity Entertainment and Fisher Paykel
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Skycity and Fisher is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Skycity Entertainment Group 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 Skycity Entertainment 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 Skycity Entertainment Group 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 Skycity Entertainment i.e., Skycity Entertainment and Fisher Paykel go up and down completely randomly.
Pair Corralation between Skycity Entertainment and Fisher Paykel
Assuming the 90 days trading horizon Skycity Entertainment Group is expected to under-perform the Fisher Paykel. In addition to that, Skycity Entertainment is 1.34 times more volatile than Fisher Paykel Healthcare. It trades about -0.03 of its total potential returns per unit of risk. Fisher Paykel Healthcare is currently generating about 0.12 per unit of volatility. If you would invest 2,201 in Fisher Paykel Healthcare on September 2, 2024 and sell it today you would earn a total of 1,251 from holding Fisher Paykel Healthcare or generate 56.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skycity Entertainment Group vs. Fisher Paykel Healthcare
Performance |
| Timeline |
| Skycity Entertainment |
| Fisher Paykel Healthcare |
Skycity Entertainment and Fisher Paykel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skycity Entertainment and Fisher Paykel
The main advantage of trading using opposite Skycity Entertainment and Fisher Paykel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skycity Entertainment 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.The idea behind Skycity Entertainment Group and Fisher Paykel Healthcare pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Fisher Paykel vs. Jupiter Energy | Fisher Paykel vs. WA1 Resources | Fisher Paykel vs. Cooper Metals | Fisher Paykel vs. OD6 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |