Correlation Between Fresenius Medical and Chemed
Can any of the company-specific risk be diversified away by investing in both Fresenius Medical and Chemed 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 Fresenius Medical and Chemed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fresenius Medical Care and Chemed, you can compare the effects of market volatilities on Fresenius Medical and Chemed 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 Fresenius Medical with a short position of Chemed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fresenius Medical and Chemed.
Diversification Opportunities for Fresenius Medical and Chemed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fresenius and Chemed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fresenius Medical Care and Chemed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemed and Fresenius 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 Fresenius Medical Care are associated (or correlated) with Chemed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemed has no effect on the direction of Fresenius Medical i.e., Fresenius Medical and Chemed go up and down completely randomly.
Pair Corralation between Fresenius Medical and Chemed
If you would invest 51,000 in Chemed on November 7, 2024 and sell it today you would earn a total of 2,500 from holding Chemed or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Fresenius Medical Care vs. Chemed
Performance |
| Timeline |
| Fresenius Medical Care |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Chemed |
Fresenius Medical and Chemed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fresenius Medical and Chemed
The main advantage of trading using opposite Fresenius Medical and Chemed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fresenius Medical position performs unexpectedly, Chemed 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 Chemed will offset losses from the drop in Chemed's long position.| Fresenius Medical vs. CNVISION MEDIA | Fresenius Medical vs. ANTA SPORTS PRODUCT | Fresenius Medical vs. MTY Food Group | Fresenius Medical vs. PENN Entertainment |
| Chemed vs. United States Steel | Chemed vs. Marie Brizard Wine | Chemed vs. ARDAGH METAL PACDL 0001 | Chemed vs. KOBE STEEL LTD |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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