Correlation Between Hanger and Fresenius Medical

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Can any of the company-specific risk be diversified away by investing in both Hanger and Fresenius Medical 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 Hanger and Fresenius Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanger Inc and Fresenius Medical Care, you can compare the effects of market volatilities on Hanger and Fresenius Medical 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 Hanger with a short position of Fresenius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanger and Fresenius Medical.

Diversification Opportunities for Hanger and Fresenius Medical

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Hanger and Fresenius is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hanger Inc and Fresenius Medical Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius Medical Care and Hanger 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 Hanger Inc are associated (or correlated) with Fresenius Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresenius Medical Care has no effect on the direction of Hanger i.e., Hanger and Fresenius Medical go up and down completely randomly.

Pair Corralation between Hanger and Fresenius Medical

If you would invest (100.00) in Hanger Inc on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Hanger Inc or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Hanger Inc  vs.  Fresenius Medical Care

 Performance 
       Timeline  
Hanger Inc 

Risk-Adjusted Performance

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Over the last 90 days Hanger Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Hanger is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
Fresenius Medical Care 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days Fresenius Medical Care has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, Fresenius Medical is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Hanger and Fresenius Medical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hanger and Fresenius Medical

The main advantage of trading using opposite Hanger and Fresenius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanger position performs unexpectedly, Fresenius Medical 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 Medical will offset losses from the drop in Fresenius Medical's long position.
The idea behind Hanger Inc and Fresenius Medical Care 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.
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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