Correlation Between Fresenius Medical and Moneta Money
Can any of the company-specific risk be diversified away by investing in both Fresenius Medical and Moneta Money 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 Moneta Money 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 Moneta Money Bank, you can compare the effects of market volatilities on Fresenius Medical and Moneta Money 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 Moneta Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fresenius Medical and Moneta Money.
Diversification Opportunities for Fresenius Medical and Moneta Money
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fresenius and Moneta is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fresenius Medical Care and Moneta Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moneta Money Bank 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 Moneta Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moneta Money Bank has no effect on the direction of Fresenius Medical i.e., Fresenius Medical and Moneta Money go up and down completely randomly.
Pair Corralation between Fresenius Medical and Moneta Money
If you would invest 4,425 in Fresenius Medical Care on November 7, 2024 and sell it today you would earn a total of 399.00 from holding Fresenius Medical Care or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fresenius Medical Care vs. Moneta Money Bank
Performance |
| Timeline |
| Fresenius Medical Care |
| Moneta Money Bank |
Fresenius Medical and Moneta Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fresenius Medical and Moneta Money
The main advantage of trading using opposite Fresenius Medical and Moneta Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fresenius Medical position performs unexpectedly, Moneta Money 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 Moneta Money will offset losses from the drop in Moneta Money's long position.| Fresenius Medical vs. Check Point Software | Fresenius Medical vs. Learning Technologies Group | Fresenius Medical vs. Logitech International SA | Fresenius Medical vs. Raytheon Technologies Corp |
| Moneta Money vs. Samsung Electronics Co | Moneta Money vs. Samsung Electronics Co | Moneta Money vs. Toyota Motor Corp | Moneta Money vs. Reliance Industries Ltd |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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