Correlation Between Fresenius Medical and Martin Marietta
Can any of the company-specific risk be diversified away by investing in both Fresenius Medical and Martin Marietta 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 Martin Marietta 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 Martin Marietta Materials,, you can compare the effects of market volatilities on Fresenius Medical and Martin Marietta 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 Martin Marietta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fresenius Medical and Martin Marietta.
Diversification Opportunities for Fresenius Medical and Martin Marietta
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fresenius and Martin is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Fresenius Medical Care and Martin Marietta Materials, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Marietta Mate 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 Martin Marietta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Marietta Mate has no effect on the direction of Fresenius Medical i.e., Fresenius Medical and Martin Marietta go up and down completely randomly.
Pair Corralation between Fresenius Medical and Martin Marietta
If you would invest 10,945 in Fresenius Medical Care on November 4, 2024 and sell it today you would earn a total of 2,744 from holding Fresenius Medical Care or generate 25.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fresenius Medical Care vs. Martin Marietta Materials,
Performance |
| Timeline |
| Fresenius Medical Care |
| Martin Marietta Mate |
Fresenius Medical and Martin Marietta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fresenius Medical and Martin Marietta
The main advantage of trading using opposite Fresenius Medical and Martin Marietta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fresenius Medical position performs unexpectedly, Martin Marietta 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 Martin Marietta will offset losses from the drop in Martin Marietta's long position.| Fresenius Medical vs. Taiwan Semiconductor Manufacturing | Fresenius Medical vs. Apple Inc | Fresenius Medical vs. Alibaba Group Holding | Fresenius Medical vs. Microsoft |
| Martin Marietta vs. Tyson Foods | Martin Marietta vs. Paycom Software | Martin Marietta vs. Teladoc Health | Martin Marietta vs. CVS 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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