Correlation Between Fisher Paykel and Ora Banda

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Can any of the company-specific risk be diversified away by investing in both Fisher Paykel and Ora Banda 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 Ora Banda 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 Ora Banda Mining, you can compare the effects of market volatilities on Fisher Paykel and Ora Banda 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 Ora Banda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Paykel and Ora Banda.

Diversification Opportunities for Fisher Paykel and Ora Banda

FisherOraDiversified AwayFisherOraDiversified Away100%
0.02
  Correlation Coefficient

Significant diversification

The 3 months correlation between Fisher and Ora is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Paykel Healthcare and Ora Banda Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ora Banda Mining 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 Ora Banda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ora Banda Mining has no effect on the direction of Fisher Paykel i.e., Fisher Paykel and Ora Banda go up and down completely randomly.

Pair Corralation between Fisher Paykel and Ora Banda

Assuming the 90 days trading horizon Fisher Paykel Healthcare is expected to generate 0.37 times more return on investment than Ora Banda. However, Fisher Paykel Healthcare is 2.72 times less risky than Ora Banda. It trades about 0.04 of its potential returns per unit of risk. Ora Banda Mining is currently generating about 0.0 per unit of risk. If you would invest  3,312  in Fisher Paykel Healthcare on September 21, 2024 and sell it today you would earn a total of  106.00  from holding Fisher Paykel Healthcare or generate 3.2% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Fisher Paykel Healthcare  vs.  Ora Banda Mining

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 01020304050
JavaScript chart by amCharts 3.21.15FPH OBM
       Timeline  
Fisher Paykel Healthcare 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Fisher Paykel Healthcare are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical indicators, Fisher Paykel is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec3131.53232.53333.53434.535
Ora Banda Mining 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ora Banda Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, Ora Banda is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.60.650.70.750.80.850.90.95

Fisher Paykel and Ora Banda Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.93-3.69-2.46-1.220.02091.232.493.745.0 0.050.100.15
JavaScript chart by amCharts 3.21.15FPH OBM
       Returns  

Pair Trading with Fisher Paykel and Ora Banda

The main advantage of trading using opposite Fisher Paykel and Ora Banda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Paykel position performs unexpectedly, Ora Banda 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 Ora Banda will offset losses from the drop in Ora Banda's long position.
The idea behind Fisher Paykel Healthcare and Ora Banda Mining 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.
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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