Correlation Between JD Health and Fresenius
Can any of the company-specific risk be diversified away by investing in both JD Health 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 JD Health and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD Health International and Fresenius SE Co, you can compare the effects of market volatilities on JD Health 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 JD Health with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Health and Fresenius.
Diversification Opportunities for JD Health and Fresenius
Pay attention - limited upside
The 3 months correlation between JDHIY and Fresenius is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding JD Health International and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and JD Health 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 JD Health International 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 JD Health i.e., JD Health and Fresenius go up and down completely randomly.
Pair Corralation between JD Health and Fresenius
If you would invest 381.00 in JD Health International on August 31, 2024 and sell it today you would earn a total of 0.00 from holding JD Health International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Health International vs. Fresenius SE Co
Performance |
| Timeline |
| JD Health International |
| Fresenius SE |
JD Health and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Health and Fresenius
The main advantage of trading using opposite JD Health and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Health 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.| JD Health vs. Pennant Group | JD Health vs. Encompass Health Corp | JD Health vs. Enhabit | JD Health vs. Concord Medical Services |
| Fresenius vs. Jack Nathan Medical | Fresenius vs. Medical Facilities | Fresenius vs. Ramsay Health Care | Fresenius vs. Nova Leap 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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