Correlation Between Oxford Technology and Fresenius Medical
Can any of the company-specific risk be diversified away by investing in both Oxford Technology 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 Oxford Technology and Fresenius Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Technology 2 and Fresenius Medical Care, you can compare the effects of market volatilities on Oxford Technology 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 Oxford Technology with a short position of Fresenius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Technology and Fresenius Medical.
Diversification Opportunities for Oxford Technology and Fresenius Medical
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oxford and Fresenius is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Technology 2 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 Oxford Technology 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 Oxford Technology 2 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 Oxford Technology i.e., Oxford Technology and Fresenius Medical go up and down completely randomly.
Pair Corralation between Oxford Technology and Fresenius Medical
Assuming the 90 days trading horizon Oxford Technology 2 is expected to under-perform the Fresenius Medical. But the stock apears to be less risky and, when comparing its historical volatility, Oxford Technology 2 is 1.0 times less risky than Fresenius Medical. The stock trades about -0.12 of its potential returns per unit of risk. The Fresenius Medical Care is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,202 in Fresenius Medical Care on October 11, 2024 and sell it today you would earn a total of 1,161 from holding Fresenius Medical Care or generate 36.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Technology 2 vs. Fresenius Medical Care
Performance |
| Timeline |
| Oxford Technology |
| Fresenius Medical Care |
Oxford Technology and Fresenius Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Technology and Fresenius Medical
The main advantage of trading using opposite Oxford Technology and Fresenius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Technology 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.| Oxford Technology vs. Batm Advanced Communications | Oxford Technology vs. Spirent Communications plc | Oxford Technology vs. Telecom Italia SpA | Oxford Technology vs. Cellnex Telecom SA |
| Fresenius Medical vs. Dairy Farm International | Fresenius Medical vs. Oxford Technology 2 | Fresenius Medical vs. Cognizant Technology Solutions | Fresenius Medical vs. Edita Food Industries |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |