Correlation Between Fresenius Medical and Helium One
Can any of the company-specific risk be diversified away by investing in both Fresenius Medical and Helium One 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 Helium One 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 Helium One Global, you can compare the effects of market volatilities on Fresenius Medical and Helium One 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 Helium One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fresenius Medical and Helium One.
Diversification Opportunities for Fresenius Medical and Helium One
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fresenius and Helium is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Fresenius Medical Care and Helium One Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helium One Global 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 Helium One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helium One Global has no effect on the direction of Fresenius Medical i.e., Fresenius Medical and Helium One go up and down completely randomly.
Pair Corralation between Fresenius Medical and Helium One
Assuming the 90 days trading horizon Fresenius Medical is expected to generate 2.18 times less return on investment than Helium One. But when comparing it to its historical volatility, Fresenius Medical Care is 4.68 times less risky than Helium One. It trades about 0.06 of its potential returns per unit of risk. Helium One Global is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 115.00 in Helium One Global on September 5, 2024 and sell it today you would lose (17.00) from holding Helium One Global or give up 14.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fresenius Medical Care vs. Helium One Global
Performance |
| Timeline |
| Fresenius Medical Care |
| Helium One Global |
Fresenius Medical and Helium One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fresenius Medical and Helium One
The main advantage of trading using opposite Fresenius Medical and Helium One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fresenius Medical position performs unexpectedly, Helium One 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 Helium One will offset losses from the drop in Helium One's long position.| Fresenius Medical vs. Samsung Electronics Co | Fresenius Medical vs. Samsung Electronics Co | Fresenius Medical vs. Hyundai Motor | Fresenius Medical vs. Toyota Motor Corp |
| Helium One vs. Dalata Hotel Group | Helium One vs. CompuGroup Medical AG | Helium One vs. Fidelity National Information | Helium One vs. Ion Beam Applications |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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