Correlation Between Fisher Paykel and Macquarie
Can any of the company-specific risk be diversified away by investing in both Fisher Paykel and Macquarie 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 Macquarie 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 Macquarie Group, you can compare the effects of market volatilities on Fisher Paykel and Macquarie 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 Macquarie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Paykel and Macquarie.
Diversification Opportunities for Fisher Paykel and Macquarie
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fisher and Macquarie is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Paykel Healthcare and Macquarie Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group 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 Macquarie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Group has no effect on the direction of Fisher Paykel i.e., Fisher Paykel and Macquarie go up and down completely randomly.
Pair Corralation between Fisher Paykel and Macquarie
Assuming the 90 days trading horizon Fisher Paykel Healthcare is expected to under-perform the Macquarie. In addition to that, Fisher Paykel is 1.23 times more volatile than Macquarie Group. It trades about -0.11 of its total potential returns per unit of risk. Macquarie Group is currently generating about -0.03 per unit of volatility. If you would invest 23,301 in Macquarie Group on December 4, 2024 and sell it today you would lose (600.00) from holding Macquarie Group or give up 2.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fisher Paykel Healthcare vs. Macquarie Group
Performance |
Timeline |
Fisher Paykel Healthcare |
Macquarie Group |
Fisher Paykel and Macquarie Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fisher Paykel and Macquarie
The main advantage of trading using opposite Fisher Paykel and Macquarie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Paykel position performs unexpectedly, Macquarie 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 Macquarie will offset losses from the drop in Macquarie's long position.Fisher Paykel vs. Legacy Iron Ore | Fisher Paykel vs. Stelar Metals | Fisher Paykel vs. Pearl Gull Iron | Fisher Paykel vs. Aeon Metals |
Macquarie vs. Hudson Investment Group | Macquarie vs. Kip McGrath Education | Macquarie vs. Australian United Investment | Macquarie vs. Queste Communications |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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