Correlation Between Aesthetic Medical and Fresenius
Can any of the company-specific risk be diversified away by investing in both Aesthetic Medical 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 Aesthetic Medical and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aesthetic Medical Intl and Fresenius SE Co, you can compare the effects of market volatilities on Aesthetic Medical 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 Aesthetic Medical with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesthetic Medical and Fresenius.
Diversification Opportunities for Aesthetic Medical and Fresenius
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aesthetic and Fresenius is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aesthetic Medical Intl and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and Aesthetic 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 Aesthetic Medical Intl 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 Aesthetic Medical i.e., Aesthetic Medical and Fresenius go up and down completely randomly.
Pair Corralation between Aesthetic Medical and Fresenius
If you would invest 876.00 in Fresenius SE Co on October 24, 2024 and sell it today you would earn a total of 72.00 from holding Fresenius SE Co or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Aesthetic Medical Intl vs. Fresenius SE Co
Performance |
| Timeline |
| Aesthetic Medical Intl |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fresenius SE |
Aesthetic Medical and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesthetic Medical and Fresenius
The main advantage of trading using opposite Aesthetic Medical and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesthetic Medical 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.| Aesthetic Medical vs. Jack Nathan Medical | Aesthetic Medical vs. Medical Facilities | Aesthetic Medical vs. Fresenius SE Co | Aesthetic Medical vs. Ramsay Health Care |
| Fresenius vs. Jack Nathan Medical | Fresenius vs. Medical Facilities | Fresenius vs. Ramsay Health Care | Fresenius vs. Nova Leap Health |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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