Correlation Between Mangels Industrial and Fresenius Medical
Can any of the company-specific risk be diversified away by investing in both Mangels Industrial and Fresenius Medical 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 Mangels Industrial and Fresenius Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mangels Industrial SA and Fresenius Medical Care, you can compare the effects of market volatilities on Mangels Industrial and Fresenius Medical 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 Mangels Industrial with a short position of Fresenius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mangels Industrial and Fresenius Medical.
Diversification Opportunities for Mangels Industrial and Fresenius Medical
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mangels and Fresenius is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Mangels Industrial SA and Fresenius Medical Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius Medical Care and Mangels Industrial 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 Mangels Industrial SA are associated (or correlated) with Fresenius Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresenius Medical Care has no effect on the direction of Mangels Industrial i.e., Mangels Industrial and Fresenius Medical go up and down completely randomly.
Pair Corralation between Mangels Industrial and Fresenius Medical
Assuming the 90 days trading horizon Mangels Industrial is expected to generate 1.7 times less return on investment than Fresenius Medical. In addition to that, Mangels Industrial is 1.2 times more volatile than Fresenius Medical Care. It trades about 0.11 of its total potential returns per unit of risk. Fresenius Medical Care is currently generating about 0.23 per unit of volatility. If you would invest 10,945 in Fresenius Medical Care on October 12, 2024 and sell it today you would earn a total of 2,744 from holding Fresenius Medical Care or generate 25.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mangels Industrial SA vs. Fresenius Medical Care
Performance |
| Timeline |
| Mangels Industrial |
| Fresenius Medical Care |
Mangels Industrial and Fresenius Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mangels Industrial and Fresenius Medical
The main advantage of trading using opposite Mangels Industrial and Fresenius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mangels Industrial position performs unexpectedly, Fresenius Medical 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 Medical will offset losses from the drop in Fresenius Medical's long position.| Mangels Industrial vs. Inepar SA Indstria | Mangels Industrial vs. Lupatech SA | Mangels Industrial vs. Paranapanema SA | Mangels Industrial vs. Rossi Residencial SA |
| Fresenius Medical vs. The Trade Desk | Fresenius Medical vs. Zoom Video Communications | Fresenius Medical vs. Mangels Industrial SA | Fresenius Medical vs. New Oriental Education |
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 Stocks Directory module to find actively traded stocks across global markets.
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