Correlation Between Ocean Harvest and Fresenius Medical
Can any of the company-specific risk be diversified away by investing in both Ocean Harvest 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 Ocean Harvest and Fresenius Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Harvest Technology and Fresenius Medical Care, you can compare the effects of market volatilities on Ocean Harvest 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 Ocean Harvest with a short position of Fresenius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Harvest and Fresenius Medical.
Diversification Opportunities for Ocean Harvest and Fresenius Medical
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ocean and Fresenius is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Harvest Technology 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 Ocean Harvest 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 Ocean Harvest Technology 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 Ocean Harvest i.e., Ocean Harvest and Fresenius Medical go up and down completely randomly.
Pair Corralation between Ocean Harvest and Fresenius Medical
Assuming the 90 days trading horizon Ocean Harvest Technology is expected to under-perform the Fresenius Medical. In addition to that, Ocean Harvest is 1.67 times more volatile than Fresenius Medical Care. It trades about -0.03 of its total potential returns per unit of risk. Fresenius Medical Care is currently generating about 0.06 per unit of volatility. If you would invest 2,812 in Fresenius Medical Care on September 14, 2024 and sell it today you would earn a total of 1,733 from holding Fresenius Medical Care or generate 61.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.32% |
| Values | Daily Returns |
Ocean Harvest Technology vs. Fresenius Medical Care
Performance |
| Timeline |
| Ocean Harvest Technology |
| Fresenius Medical Care |
Ocean Harvest and Fresenius Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Harvest and Fresenius Medical
The main advantage of trading using opposite Ocean Harvest and Fresenius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Harvest 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.| Ocean Harvest vs. Samsung Electronics Co | Ocean Harvest vs. Samsung Electronics Co | Ocean Harvest vs. Hyundai Motor | Ocean Harvest vs. Toyota Motor Corp |
| Fresenius Medical vs. Monster Beverage Corp | Fresenius Medical vs. MoneysupermarketCom Group PLC | Fresenius Medical vs. Albion Technology General | Fresenius Medical vs. Ocean Harvest Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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