Correlation Between Anglesey Mining and Fresenius Medical
Can any of the company-specific risk be diversified away by investing in both Anglesey Mining 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 Anglesey Mining and Fresenius Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglesey Mining and Fresenius Medical Care, you can compare the effects of market volatilities on Anglesey Mining 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 Anglesey Mining with a short position of Fresenius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglesey Mining and Fresenius Medical.
Diversification Opportunities for Anglesey Mining and Fresenius Medical
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anglesey and Fresenius is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Anglesey Mining 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 Anglesey Mining 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 Anglesey Mining 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 Anglesey Mining i.e., Anglesey Mining and Fresenius Medical go up and down completely randomly.
Pair Corralation between Anglesey Mining and Fresenius Medical
Assuming the 90 days trading horizon Anglesey Mining is expected to under-perform the Fresenius Medical. In addition to that, Anglesey Mining is 2.45 times more volatile than Fresenius Medical Care. It trades about -0.06 of its total potential returns per unit of risk. Fresenius Medical Care is currently generating about 0.05 per unit of volatility. If you would invest 3,934 in Fresenius Medical Care on September 3, 2024 and sell it today you would earn a total of 374.00 from holding Fresenius Medical Care or generate 9.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Anglesey Mining vs. Fresenius Medical Care
Performance |
Timeline |
Anglesey Mining |
Fresenius Medical Care |
Anglesey Mining and Fresenius Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anglesey Mining and Fresenius Medical
The main advantage of trading using opposite Anglesey Mining and Fresenius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglesey Mining 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.Anglesey Mining vs. Cincinnati Financial Corp | Anglesey Mining vs. Extra Space Storage | Anglesey Mining vs. Alliance Data Systems | Anglesey Mining vs. Fidelity National Information |
Fresenius Medical vs. Catalyst Media Group | Fresenius Medical vs. CATLIN GROUP | Fresenius Medical vs. RTW Venture Fund | Fresenius Medical vs. Secure Property Development |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Transaction History View history of all your transactions and understand their impact on performance | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |