Correlation Between Oncology Institute and Fresenius
Can any of the company-specific risk be diversified away by investing in both Oncology Institute 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 Oncology Institute and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncology Institute and Fresenius SE Co, you can compare the effects of market volatilities on Oncology Institute 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 Oncology Institute with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncology Institute and Fresenius.
Diversification Opportunities for Oncology Institute and Fresenius
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oncology and Fresenius is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Oncology Institute and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and Oncology Institute 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 Oncology Institute 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 Oncology Institute i.e., Oncology Institute and Fresenius go up and down completely randomly.
Pair Corralation between Oncology Institute and Fresenius
Considering the 90-day investment horizon Oncology Institute is expected to under-perform the Fresenius. In addition to that, Oncology Institute is 8.32 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncology Institute vs. Fresenius SE Co
Performance |
| Timeline |
| Oncology Institute |
| Fresenius SE |
Oncology Institute and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncology Institute and Fresenius
The main advantage of trading using opposite Oncology Institute and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncology Institute 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.| Oncology Institute vs. Ramsay Health Care | Oncology Institute vs. Medical Facilities | Oncology Institute vs. Jack Nathan Medical | Oncology Institute vs. Fresenius SE Co |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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