Correlation Between Fielmann Aktiengesellscha and Webster Financial
Can any of the company-specific risk be diversified away by investing in both Fielmann Aktiengesellscha and Webster Financial 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 Fielmann Aktiengesellscha and Webster Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fielmann Aktiengesellschaft and Webster Financial, you can compare the effects of market volatilities on Fielmann Aktiengesellscha and Webster Financial 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 Fielmann Aktiengesellscha with a short position of Webster Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fielmann Aktiengesellscha and Webster Financial.
Diversification Opportunities for Fielmann Aktiengesellscha and Webster Financial
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fielmann and Webster is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Fielmann Aktiengesellschaft and Webster Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webster Financial and Fielmann Aktiengesellscha 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 Fielmann Aktiengesellschaft are associated (or correlated) with Webster Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webster Financial has no effect on the direction of Fielmann Aktiengesellscha i.e., Fielmann Aktiengesellscha and Webster Financial go up and down completely randomly.
Pair Corralation between Fielmann Aktiengesellscha and Webster Financial
Assuming the 90 days trading horizon Fielmann Aktiengesellscha is expected to generate 122.38 times less return on investment than Webster Financial. But when comparing it to its historical volatility, Fielmann Aktiengesellschaft is 1.65 times less risky than Webster Financial. It trades about 0.0 of its potential returns per unit of risk. Webster Financial is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,685 in Webster Financial on September 1, 2024 and sell it today you would earn a total of 2,165 from holding Webster Financial or generate 58.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
Fielmann Aktiengesellschaft vs. Webster Financial
Performance |
| Timeline |
| Fielmann Aktiengesellscha |
| Webster Financial |
Fielmann Aktiengesellscha and Webster Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fielmann Aktiengesellscha and Webster Financial
The main advantage of trading using opposite Fielmann Aktiengesellscha and Webster Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fielmann Aktiengesellscha position performs unexpectedly, Webster Financial 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 Webster Financial will offset losses from the drop in Webster Financial's long position.| Fielmann Aktiengesellscha vs. CVW CLEANTECH INC | Fielmann Aktiengesellscha vs. Calibre Mining Corp | Fielmann Aktiengesellscha vs. Clean Energy Fuels | Fielmann Aktiengesellscha vs. FORMPIPE SOFTWARE AB |
| Webster Financial vs. Fifth Third Bancorp | Webster Financial vs. Superior Plus Corp | Webster Financial vs. Origin Agritech | Webster Financial vs. Identiv |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |