Correlation Between Virtus Investment and Fresenius
Can any of the company-specific risk be diversified away by investing in both Virtus Investment 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 Virtus Investment and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Investment Partners and Fresenius SE Co, you can compare the effects of market volatilities on Virtus Investment 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 Virtus Investment with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Investment and Fresenius.
Diversification Opportunities for Virtus Investment and Fresenius
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Virtus and Fresenius is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and Virtus Investment 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 Virtus Investment Partners 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 Virtus Investment i.e., Virtus Investment and Fresenius go up and down completely randomly.
Pair Corralation between Virtus Investment and Fresenius
Assuming the 90 days horizon Virtus Investment Partners is expected to under-perform the Fresenius. In addition to that, Virtus Investment is 2.15 times more volatile than Fresenius SE Co. It trades about -0.13 of its total potential returns per unit of risk. Fresenius SE Co is currently generating about 0.55 per unit of volatility. If you would invest 3,347 in Fresenius SE Co on October 24, 2024 and sell it today you would earn a total of 248.00 from holding Fresenius SE Co or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Investment Partners vs. Fresenius SE Co
Performance |
| Timeline |
| Virtus Investment |
| Fresenius SE |
Virtus Investment and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Investment and Fresenius
The main advantage of trading using opposite Virtus Investment and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Investment 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.| Virtus Investment vs. Stag Industrial | Virtus Investment vs. Forsys Metals Corp | Virtus Investment vs. MCEWEN MINING INC | Virtus Investment vs. ADRIATIC METALS LS 013355 |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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