Correlation Between Accesso Technology and Fresenius Medical
Can any of the company-specific risk be diversified away by investing in both Accesso Technology 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 Accesso Technology and Fresenius Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accesso Technology Group and Fresenius Medical Care, you can compare the effects of market volatilities on Accesso Technology 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 Accesso Technology with a short position of Fresenius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accesso Technology and Fresenius Medical.
Diversification Opportunities for Accesso Technology and Fresenius Medical
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Accesso and Fresenius is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Accesso Technology Group 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 Accesso Technology 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 Accesso Technology Group 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 Accesso Technology i.e., Accesso Technology and Fresenius Medical go up and down completely randomly.
Pair Corralation between Accesso Technology and Fresenius Medical
Assuming the 90 days trading horizon Accesso Technology Group is expected to under-perform the Fresenius Medical. In addition to that, Accesso Technology is 1.07 times more volatile than Fresenius Medical Care. It trades about -0.36 of its total potential returns per unit of risk. Fresenius Medical Care is currently generating about 0.21 per unit of volatility. If you would invest 4,429 in Fresenius Medical Care on October 29, 2024 and sell it today you would earn a total of 226.00 from holding Fresenius Medical Care or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accesso Technology Group vs. Fresenius Medical Care
Performance |
| Timeline |
| Accesso Technology |
| Fresenius Medical Care |
Accesso Technology and Fresenius Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accesso Technology and Fresenius Medical
The main advantage of trading using opposite Accesso Technology and Fresenius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accesso Technology 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.| Accesso Technology vs. CleanTech Lithium plc | Accesso Technology vs. Litigation Capital Management | Accesso Technology vs. Ecclesiastical Insurance Office | Accesso Technology vs. XLMedia PLC |
| Fresenius Medical vs. Adriatic Metals | Fresenius Medical vs. Bisichi Mining PLC | Fresenius Medical vs. Europa Metals | Fresenius Medical vs. Ryanair Holdings plc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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