Correlation Between CSPC Pharmaceutical and Fisher Paykel

Can any of the company-specific risk be diversified away by investing in both CSPC Pharmaceutical 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 CSPC Pharmaceutical and Fisher Paykel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CSPC Pharmaceutical Group and Fisher Paykel Healthcare, you can compare the effects of market volatilities on CSPC Pharmaceutical 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 CSPC Pharmaceutical with a short position of Fisher Paykel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSPC Pharmaceutical and Fisher Paykel.

Diversification Opportunities for CSPC Pharmaceutical and Fisher Paykel

0.0

Correlation Coefficient

CSPC Pharmaceutical  Fisher Paykel

Pay attention - limited upside

The 3 months correlation between CSPC and Fisher is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CSPC Pharmaceutical 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 CSPC Pharmaceutical 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 CSPC Pharmaceutical 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 CSPC Pharmaceutical i.e., CSPC Pharmaceutical and Fisher Paykel go up and down completely randomly.

Pair Corralation between CSPC Pharmaceutical and Fisher Paykel

If you would invest  2,070  in Fisher Paykel Healthcare on July 29, 2025 and sell it today you would earn a total of  0.00  from holding Fisher Paykel Healthcare or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

CSPC Pharmaceutical Group  vs.  Fisher Paykel Healthcare

CSPC Pharmaceutical

Risk-Adjusted Performance

Weakest

Over the last 90 days CSPC Pharmaceutical Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Fisher Paykel Healthcare

Risk-Adjusted Performance

Weakest

Over the last 90 days Fisher Paykel Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Fisher Paykel is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CSPC Pharmaceutical and Fisher Paykel

The main advantage of trading using opposite CSPC Pharmaceutical and Fisher Paykel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSPC Pharmaceutical 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 CSPC Pharmaceutical 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.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.