Correlation Between United States and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both United States and CompuGroup 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 United States and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and CompuGroup Medical AG, you can compare the effects of market volatilities on United States and CompuGroup 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 United States with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and CompuGroup Medical.
Diversification Opportunities for United States and CompuGroup Medical
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between United and CompuGroup is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and CompuGroup Medical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and United States 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 United States Steel are associated (or correlated) with CompuGroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuGroup Medical has no effect on the direction of United States i.e., United States and CompuGroup Medical go up and down completely randomly.
Pair Corralation between United States and CompuGroup Medical
Assuming the 90 days trading horizon United States Steel is expected to generate 1.13 times more return on investment than CompuGroup Medical. However, United States is 1.13 times more volatile than CompuGroup Medical AG. It trades about 0.03 of its potential returns per unit of risk. CompuGroup Medical AG is currently generating about -0.1 per unit of risk. If you would invest 3,601 in United States Steel on August 27, 2024 and sell it today you would earn a total of 375.00 from holding United States Steel or generate 10.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
United States Steel vs. CompuGroup Medical AG
Performance |
| Timeline |
| United States Steel |
| CompuGroup Medical |
United States and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and CompuGroup Medical
The main advantage of trading using opposite United States and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, CompuGroup 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 CompuGroup Medical will offset losses from the drop in CompuGroup Medical's long position.| United States vs. Samsung Electronics Co | United States vs. Samsung Electronics Co | United States vs. Hyundai Motor | United States vs. Toyota Motor Corp |
| CompuGroup Medical vs. Samsung Electronics Co | CompuGroup Medical vs. Samsung Electronics Co | CompuGroup Medical vs. Hyundai Motor | CompuGroup Medical vs. Toyota Motor Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |