Correlation Between Fresenius and Jack Nathan
Can any of the company-specific risk be diversified away by investing in both Fresenius and Jack Nathan 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 Jack Nathan 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 Jack Nathan Medical, you can compare the effects of market volatilities on Fresenius and Jack Nathan 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 Jack Nathan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fresenius and Jack Nathan.
Diversification Opportunities for Fresenius and Jack Nathan
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fresenius and Jack is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Fresenius SE Co and Jack Nathan Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Nathan Medical 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 Jack Nathan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Nathan Medical has no effect on the direction of Fresenius i.e., Fresenius and Jack Nathan go up and down completely randomly.
Pair Corralation between Fresenius and Jack Nathan
Assuming the 90 days horizon Fresenius SE Co is expected to generate 0.17 times more return on investment than Jack Nathan. However, Fresenius SE Co is 5.98 times less risky than Jack Nathan. It trades about -0.24 of its potential returns per unit of risk. Jack Nathan Medical is currently generating about -0.21 per unit of risk. If you would invest 937.00 in Fresenius SE Co on August 29, 2024 and sell it today you would lose (66.00) from holding Fresenius SE Co or give up 7.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fresenius SE Co vs. Jack Nathan Medical
Performance |
| Timeline |
| Fresenius SE |
| Jack Nathan Medical |
Fresenius and Jack Nathan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fresenius and Jack Nathan
The main advantage of trading using opposite Fresenius and Jack Nathan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fresenius position performs unexpectedly, Jack Nathan 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 Jack Nathan will offset losses from the drop in Jack Nathan's long position.| Fresenius vs. Jack Nathan Medical | Fresenius vs. Medical Facilities | Fresenius vs. Ramsay Health Care | Fresenius vs. Nova Leap Health |
| Jack Nathan vs. IMAC Holdings | Jack Nathan vs. HCA Holdings | Jack Nathan vs. HUMANA INC | Jack Nathan vs. SCOR PK |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |