Correlation Between Fresenius and Fresenius
Can any of the company-specific risk be diversified away by investing in both Fresenius and Fresenius 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 Fresenius and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fresenius SE Co and Fresenius SE Co, you can compare the effects of market volatilities on Fresenius and Fresenius 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 Fresenius with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fresenius and Fresenius.
Diversification Opportunities for Fresenius and Fresenius
Poor diversification
The 3 months correlation between Fresenius and Fresenius is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Fresenius SE Co and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and Fresenius 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 Fresenius SE Co are associated (or correlated) with Fresenius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresenius SE has no effect on the direction of Fresenius i.e., Fresenius and Fresenius go up and down completely randomly.
Pair Corralation between Fresenius and Fresenius
Assuming the 90 days horizon Fresenius SE Co is expected to generate 1.88 times more return on investment than Fresenius. However, Fresenius is 1.88 times more volatile than Fresenius SE Co. It trades about 0.07 of its potential returns per unit of risk. Fresenius SE Co is currently generating about -0.01 per unit of risk. If you would invest 702.00 in Fresenius SE Co on January 20, 2024 and sell it today you would earn a total of 28.00 from holding Fresenius SE Co or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Fresenius SE Co vs. Fresenius SE Co
Performance |
| Timeline |
| Fresenius SE |
| Fresenius SE |
Fresenius and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fresenius and Fresenius
The main advantage of trading using opposite Fresenius and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fresenius position performs unexpectedly, Fresenius 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 Fresenius will offset losses from the drop in Fresenius' long position.| Fresenius vs. Pennant Group | Fresenius vs. Encompass Health Corp | Fresenius vs. Enhabit | Fresenius vs. Concord Medical Services |
| Fresenius vs. Pennant Group | Fresenius vs. Encompass Health Corp | Fresenius vs. Enhabit | Fresenius vs. Concord Medical Services |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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