| CMPGY Stock | | | USD 33.71 0.31 0.93% |
The correlation of Compass Group is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.
Compass Group Correlation With Market
Weak diversification
The correlation between Compass Group PLC and DJI is 0.32 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Compass Group PLC and DJI in the same portfolio, assuming nothing else is changed.
The ability to find closely correlated positions to Compass Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Compass Group when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Compass Group - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Compass Group PLC to buy it.
Moving together with Compass Pink Sheet
Moving against Compass Pink Sheet
Related Correlations Analysis
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Be your own money manager
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Compass Group Corporate Management