Correlation Between Fisher Paykel and BTC Health
Can any of the company-specific risk be diversified away by investing in both Fisher Paykel and BTC Health 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 BTC Health 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 BTC Health Limited, you can compare the effects of market volatilities on Fisher Paykel and BTC Health 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 BTC Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Paykel and BTC Health.
Diversification Opportunities for Fisher Paykel and BTC Health
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fisher and BTC is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Paykel Healthcare and BTC Health Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTC Health Limited 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 BTC Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTC Health Limited has no effect on the direction of Fisher Paykel i.e., Fisher Paykel and BTC Health go up and down completely randomly.
Pair Corralation between Fisher Paykel and BTC Health
Assuming the 90 days trading horizon Fisher Paykel Healthcare is expected to under-perform the BTC Health. But the stock apears to be less risky and, when comparing its historical volatility, Fisher Paykel Healthcare is 4.85 times less risky than BTC Health. The stock trades about -0.12 of its potential returns per unit of risk. The BTC Health Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7.30 in BTC Health Limited on December 28, 2024 and sell it today you would lose (0.80) from holding BTC Health Limited or give up 10.96% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fisher Paykel Healthcare vs. BTC Health Limited
Performance |
Timeline |
Fisher Paykel Healthcare |
BTC Health Limited |
Fisher Paykel and BTC Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fisher Paykel and BTC Health
The main advantage of trading using opposite Fisher Paykel and BTC Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Paykel position performs unexpectedly, BTC Health 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 BTC Health will offset losses from the drop in BTC Health's long position.Fisher Paykel vs. Hansen Technologies | Fisher Paykel vs. Readytech Holdings | Fisher Paykel vs. Technology One | Fisher Paykel vs. Treasury Wine Estates |
BTC Health vs. Stelar Metals | BTC Health vs. Aussie Broadband | BTC Health vs. Air New Zealand | BTC Health vs. Centaurus 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Stocks Directory Find actively traded stocks across global markets | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |