Correlation Between Fresenius Medical and Ion Beam
Can any of the company-specific risk be diversified away by investing in both Fresenius Medical and Ion Beam 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 Medical and Ion Beam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fresenius Medical Care and Ion Beam Applications, you can compare the effects of market volatilities on Fresenius Medical and Ion Beam 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 Medical with a short position of Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fresenius Medical and Ion Beam.
Diversification Opportunities for Fresenius Medical and Ion Beam
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fresenius and Ion is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Fresenius Medical Care and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications and Fresenius Medical 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 Medical Care are associated (or correlated) with Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of Fresenius Medical i.e., Fresenius Medical and Ion Beam go up and down completely randomly.
Pair Corralation between Fresenius Medical and Ion Beam
Assuming the 90 days trading horizon Fresenius Medical Care is expected to generate 0.62 times more return on investment than Ion Beam. However, Fresenius Medical Care is 1.61 times less risky than Ion Beam. It trades about 0.37 of its potential returns per unit of risk. Ion Beam Applications is currently generating about 0.1 per unit of risk. If you would invest 3,679 in Fresenius Medical Care on September 3, 2024 and sell it today you would earn a total of 472.00 from holding Fresenius Medical Care or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fresenius Medical Care vs. Ion Beam Applications
Performance |
| Timeline |
| Fresenius Medical Care |
| Ion Beam Applications |
Fresenius Medical and Ion Beam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fresenius Medical and Ion Beam
The main advantage of trading using opposite Fresenius Medical and Ion Beam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fresenius Medical position performs unexpectedly, Ion Beam 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 Ion Beam will offset losses from the drop in Ion Beam's long position.| Fresenius Medical vs. Catalyst Media Group | Fresenius Medical vs. CATLIN GROUP | Fresenius Medical vs. Magnora ASA | Fresenius Medical vs. RTW Venture Fund |
| Ion Beam vs. Catalyst Media Group | Ion Beam vs. CATLIN GROUP | Ion Beam vs. Magnora ASA | Ion Beam vs. RTW Venture Fund |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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