Correlation Between Recruit Holdings and Fresenius
Can any of the company-specific risk be diversified away by investing in both Recruit Holdings 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 Recruit Holdings and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Recruit Holdings Co and Fresenius SE Co, you can compare the effects of market volatilities on Recruit Holdings 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 Recruit Holdings with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Recruit Holdings and Fresenius.
Diversification Opportunities for Recruit Holdings and Fresenius
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Recruit and Fresenius is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Recruit Holdings Co and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and Recruit Holdings 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 Recruit Holdings Co 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 Recruit Holdings i.e., Recruit Holdings and Fresenius go up and down completely randomly.
Pair Corralation between Recruit Holdings and Fresenius
Assuming the 90 days horizon Recruit Holdings Co is expected to generate 1.52 times more return on investment than Fresenius. However, Recruit Holdings is 1.52 times more volatile than Fresenius SE Co. It trades about 0.12 of its potential returns per unit of risk. Fresenius SE Co is currently generating about 0.03 per unit of risk. If you would invest 730.00 in Recruit Holdings Co on August 29, 2024 and sell it today you would earn a total of 592.00 from holding Recruit Holdings Co or generate 81.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Recruit Holdings Co vs. Fresenius SE Co
Performance |
| Timeline |
| Recruit Holdings |
| Fresenius SE |
Recruit Holdings and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Recruit Holdings and Fresenius
The main advantage of trading using opposite Recruit Holdings and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Recruit Holdings 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.| Recruit Holdings vs. Kelly Services A | Recruit Holdings vs. Ziprecruiter | Recruit Holdings vs. Robert Half International | Recruit Holdings vs. Upwork Inc |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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