Correlation Between Cano Health and Fresenius
Can any of the company-specific risk be diversified away by investing in both Cano Health 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 Cano Health and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cano Health and Fresenius SE Co, you can compare the effects of market volatilities on Cano Health 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 Cano Health with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cano Health and Fresenius.
Diversification Opportunities for Cano Health and Fresenius
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cano and Fresenius is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cano Health and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and Cano Health 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 Cano Health 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 Cano Health i.e., Cano Health and Fresenius go up and down completely randomly.
Pair Corralation between Cano Health and Fresenius
If you would invest 137.00 in Cano Health on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Cano Health or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
Cano Health vs. Fresenius SE Co
Performance |
| Timeline |
| Cano Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fresenius SE |
Cano Health and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cano Health and Fresenius
The main advantage of trading using opposite Cano Health and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cano Health 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.| Cano Health vs. Oncology Institute | Cano Health vs. Lifestance Health Group | Cano Health vs. agilon health | Cano Health vs. Pennant Group |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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