Correlation Between Triad Group and Fresenius Medical
Can any of the company-specific risk be diversified away by investing in both Triad Group 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 Triad Group and Fresenius Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triad Group PLC and Fresenius Medical Care, you can compare the effects of market volatilities on Triad Group 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 Triad Group with a short position of Fresenius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triad Group and Fresenius Medical.
Diversification Opportunities for Triad Group and Fresenius Medical
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Triad and Fresenius is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Triad Group PLC 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 Triad Group 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 Triad Group PLC 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 Triad Group i.e., Triad Group and Fresenius Medical go up and down completely randomly.
Pair Corralation between Triad Group and Fresenius Medical
Assuming the 90 days trading horizon Triad Group PLC is expected to under-perform the Fresenius Medical. In addition to that, Triad Group is 1.56 times more volatile than Fresenius Medical Care. It trades about -0.07 of its total potential returns per unit of risk. Fresenius Medical Care is currently generating about 0.37 per unit of volatility. If you would invest 3,679 in Fresenius Medical Care on September 3, 2024 and sell it today you would earn a total of 472.00 from holding Fresenius Medical Care or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triad Group PLC vs. Fresenius Medical Care
Performance |
| Timeline |
| Triad Group PLC |
| Fresenius Medical Care |
Triad Group and Fresenius Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triad Group and Fresenius Medical
The main advantage of trading using opposite Triad Group and Fresenius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triad Group 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.| Triad Group vs. Global Net Lease | Triad Group vs. Discover Financial Services | Triad Group vs. MyHealthChecked Plc | Triad Group vs. Inspiration Healthcare Group |
| Fresenius Medical vs. Catalyst Media Group | Fresenius Medical vs. CATLIN GROUP | Fresenius Medical vs. Magnora ASA | Fresenius Medical vs. RTW Venture Fund |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |