Correlation Between Enhabit and Fresenius

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Enhabit 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 Enhabit and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enhabit and Fresenius SE Co, you can compare the effects of market volatilities on Enhabit 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 Enhabit with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enhabit and Fresenius.

Diversification Opportunities for Enhabit and Fresenius

0.13
  Correlation Coefficient

Average diversification

The 3 months correlation between Enhabit and Fresenius is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Enhabit and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and Enhabit 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 Enhabit 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 Enhabit i.e., Enhabit and Fresenius go up and down completely randomly.

Pair Corralation between Enhabit and Fresenius

Given the investment horizon of 90 days Enhabit is expected to under-perform the Fresenius. In addition to that, Enhabit is 2.3 times more volatile than Fresenius SE Co. It trades about -0.01 of its total potential returns per unit of risk. Fresenius SE Co is currently generating about 0.05 per unit of volatility. If you would invest  753.00  in Fresenius SE Co on September 12, 2024 and sell it today you would earn a total of  138.00  from holding Fresenius SE Co or generate 18.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy99.6%
ValuesDaily Returns

Enhabit  vs.  Fresenius SE Co

 Performance 
       Timeline  
Enhabit 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Enhabit are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Enhabit may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Fresenius SE 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Fresenius SE Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Fresenius is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Enhabit and Fresenius Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Enhabit and Fresenius

The main advantage of trading using opposite Enhabit and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enhabit 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.
The idea behind Enhabit and Fresenius SE Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital