Correlation Between Superior Plus and Fresenius
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and Fresenius SE Co, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Fresenius.
Diversification Opportunities for Superior Plus and Fresenius
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Superior and Fresenius is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and Superior Plus 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 Superior Plus Corp 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 Superior Plus i.e., Superior Plus and Fresenius go up and down completely randomly.
Pair Corralation between Superior Plus and Fresenius
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Fresenius. In addition to that, Superior Plus is 1.88 times more volatile than Fresenius SE Co. It trades about -0.07 of its total potential returns per unit of risk. Fresenius SE Co is currently generating about 0.13 per unit of volatility. If you would invest 2,556 in Fresenius SE Co on September 3, 2024 and sell it today you would earn a total of 773.00 from holding Fresenius SE Co or generate 30.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Fresenius SE Co
Performance |
| Timeline |
| Superior Plus Corp |
| Fresenius SE |
Superior Plus and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Fresenius
The main advantage of trading using opposite Superior Plus and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. Collins Foods Limited | Superior Plus vs. Thai Beverage Public | Superior Plus vs. ADRIATIC METALS LS 013355 | Superior Plus vs. Lifeway Foods |
| Fresenius vs. Superior Plus Corp | Fresenius vs. NMI Holdings | Fresenius vs. Origin Agritech | Fresenius vs. SIVERS SEMICONDUCTORS AB |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |