Correlation Between Fresenius and Fuchs Petrolub
Can any of the company-specific risk be diversified away by investing in both Fresenius and Fuchs Petrolub 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 and Fuchs Petrolub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fresenius SE Co and Fuchs Petrolub SE, you can compare the effects of market volatilities on Fresenius and Fuchs Petrolub 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 with a short position of Fuchs Petrolub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fresenius and Fuchs Petrolub.
Diversification Opportunities for Fresenius and Fuchs Petrolub
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fresenius and Fuchs is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fresenius SE Co and Fuchs Petrolub SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuchs Petrolub SE and Fresenius 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 SE Co are associated (or correlated) with Fuchs Petrolub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuchs Petrolub SE has no effect on the direction of Fresenius i.e., Fresenius and Fuchs Petrolub go up and down completely randomly.
Pair Corralation between Fresenius and Fuchs Petrolub
Assuming the 90 days horizon Fresenius SE Co is expected to under-perform the Fuchs Petrolub. But the pink sheet apears to be less risky and, when comparing its historical volatility, Fresenius SE Co is 1.24 times less risky than Fuchs Petrolub. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Fuchs Petrolub SE is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,061 in Fuchs Petrolub SE on September 12, 2024 and sell it today you would earn a total of 66.00 from holding Fuchs Petrolub SE or generate 6.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fresenius SE Co vs. Fuchs Petrolub SE
Performance |
| Timeline |
| Fresenius SE |
| Fuchs Petrolub SE |
Fresenius and Fuchs Petrolub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fresenius and Fuchs Petrolub
The main advantage of trading using opposite Fresenius and Fuchs Petrolub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fresenius position performs unexpectedly, Fuchs Petrolub 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 Fuchs Petrolub will offset losses from the drop in Fuchs Petrolub's long position.| Fresenius vs. Pennant Group | Fresenius vs. Encompass Health Corp | Fresenius vs. Enhabit | Fresenius vs. Concord Medical Services |
| Fuchs Petrolub vs. Chemours Co | Fuchs Petrolub vs. International Flavors Fragrances | Fuchs Petrolub vs. Air Products and | Fuchs Petrolub vs. PPG Industries |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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