Correlation Between Assure Holdings and Fresenius
Can any of the company-specific risk be diversified away by investing in both Assure Holdings and Fresenius 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 Assure Holdings and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assure Holdings Corp and Fresenius SE Co, you can compare the effects of market volatilities on Assure Holdings and Fresenius 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 Assure Holdings with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assure Holdings and Fresenius.
Diversification Opportunities for Assure Holdings and Fresenius
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Assure and Fresenius is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Assure Holdings Corp and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and Assure Holdings 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 Assure Holdings Corp are associated (or correlated) with Fresenius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresenius SE has no effect on the direction of Assure Holdings i.e., Assure Holdings and Fresenius go up and down completely randomly.
Pair Corralation between Assure Holdings and Fresenius
Given the investment horizon of 90 days Assure Holdings Corp is expected to under-perform the Fresenius. In addition to that, Assure Holdings is 6.69 times more volatile than Fresenius SE Co. It trades about -0.06 of its total potential returns per unit of risk. Fresenius SE Co is currently generating about 0.04 per unit of volatility. If you would invest 675.00 in Fresenius SE Co on August 30, 2024 and sell it today you would earn a total of 196.00 from holding Fresenius SE Co or generate 29.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 82.46% |
| Values | Daily Returns |
Assure Holdings Corp vs. Fresenius SE Co
Performance |
| Timeline |
| Assure Holdings Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fresenius SE |
Assure Holdings and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assure Holdings and Fresenius
The main advantage of trading using opposite Assure Holdings and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assure Holdings position performs unexpectedly, Fresenius 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 Fresenius will offset losses from the drop in Fresenius' long position.| Assure Holdings vs. Novo Integrated Sciences | Assure Holdings vs. Aveanna Healthcare Holdings | Assure Holdings vs. P3 Health Partners | Assure Holdings vs. Sonida Senior Living |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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