Correlation Between Jack Nathan and Fresenius
Can any of the company-specific risk be diversified away by investing in both Jack Nathan 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 Jack Nathan and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jack Nathan Medical and Fresenius SE Co, you can compare the effects of market volatilities on Jack Nathan 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 Jack Nathan with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack Nathan and Fresenius.
Diversification Opportunities for Jack Nathan and Fresenius
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jack and Fresenius is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jack Nathan Medical and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and Jack Nathan 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 Jack Nathan Medical 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 Jack Nathan i.e., Jack Nathan and Fresenius go up and down completely randomly.
Pair Corralation between Jack Nathan and Fresenius
Assuming the 90 days horizon Jack Nathan Medical is expected to under-perform the Fresenius. In addition to that, Jack Nathan is 5.98 times more volatile than Fresenius SE Co. It trades about -0.21 of its total potential returns per unit of risk. Fresenius SE Co is currently generating about -0.24 per unit of volatility. 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 |
Jack Nathan Medical vs. Fresenius SE Co
Performance |
| Timeline |
| Jack Nathan Medical |
| Fresenius SE |
Jack Nathan and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jack Nathan and Fresenius
The main advantage of trading using opposite Jack Nathan and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack Nathan 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.| Jack Nathan vs. IMAC Holdings | Jack Nathan vs. HCA Holdings | Jack Nathan vs. HUMANA INC | Jack Nathan vs. SCOR PK |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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