Correlation Between Fuchs Petrolub and RATH Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Fuchs Petrolub and RATH Aktiengesellscha 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 Fuchs Petrolub and RATH Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuchs Petrolub SE and RATH Aktiengesellschaft, you can compare the effects of market volatilities on Fuchs Petrolub and RATH Aktiengesellscha 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 Fuchs Petrolub with a short position of RATH Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuchs Petrolub and RATH Aktiengesellscha.
Diversification Opportunities for Fuchs Petrolub and RATH Aktiengesellscha
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fuchs and RATH is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Fuchs Petrolub SE and RATH Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RATH Aktiengesellschaft and Fuchs Petrolub 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 Fuchs Petrolub SE are associated (or correlated) with RATH Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RATH Aktiengesellschaft has no effect on the direction of Fuchs Petrolub i.e., Fuchs Petrolub and RATH Aktiengesellscha go up and down completely randomly.
Pair Corralation between Fuchs Petrolub and RATH Aktiengesellscha
Assuming the 90 days trading horizon Fuchs Petrolub SE is expected to generate 2.68 times more return on investment than RATH Aktiengesellscha. However, Fuchs Petrolub is 2.68 times more volatile than RATH Aktiengesellschaft. It trades about 0.12 of its potential returns per unit of risk. RATH Aktiengesellschaft is currently generating about 0.0 per unit of risk. If you would invest 4,208 in Fuchs Petrolub SE on August 27, 2024 and sell it today you would earn a total of 146.00 from holding Fuchs Petrolub SE or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Fuchs Petrolub SE vs. RATH Aktiengesellschaft
Performance |
| Timeline |
| Fuchs Petrolub SE |
| RATH Aktiengesellschaft |
Fuchs Petrolub and RATH Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuchs Petrolub and RATH Aktiengesellscha
The main advantage of trading using opposite Fuchs Petrolub and RATH Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuchs Petrolub position performs unexpectedly, RATH Aktiengesellscha 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 RATH Aktiengesellscha will offset losses from the drop in RATH Aktiengesellscha's long position.| Fuchs Petrolub vs. Vienna Insurance Group | Fuchs Petrolub vs. AMAG Austria Metall | Fuchs Petrolub vs. Wiener Privatbank SE | Fuchs Petrolub vs. UNIQA Insurance Group |
| RATH Aktiengesellscha vs. Oberbank AG | RATH Aktiengesellscha vs. Semperit Aktiengesellschaft Holding | RATH Aktiengesellscha vs. Telekom Austria AG | RATH Aktiengesellscha vs. Oesterr Post AG |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |