Correlation Between CompuGroup Medical and Admiral Group
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Admiral Group 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 CompuGroup Medical and Admiral Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CompuGroup Medical AG and Admiral Group PLC, you can compare the effects of market volatilities on CompuGroup Medical and Admiral Group 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 CompuGroup Medical with a short position of Admiral Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Admiral Group.
Diversification Opportunities for CompuGroup Medical and Admiral Group
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between CompuGroup and Admiral is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical AG and Admiral Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Admiral Group PLC and CompuGroup Medical 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 CompuGroup Medical AG are associated (or correlated) with Admiral Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Admiral Group PLC has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Admiral Group go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Admiral Group
Assuming the 90 days trading horizon CompuGroup Medical AG is expected to generate 1.77 times more return on investment than Admiral Group. However, CompuGroup Medical is 1.77 times more volatile than Admiral Group PLC. It trades about 0.07 of its potential returns per unit of risk. Admiral Group PLC is currently generating about -0.25 per unit of risk. If you would invest 1,347 in CompuGroup Medical AG on August 25, 2024 and sell it today you would earn a total of 78.00 from holding CompuGroup Medical AG or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical AG vs. Admiral Group PLC
Performance |
| Timeline |
| CompuGroup Medical |
| Admiral Group PLC |
CompuGroup Medical and Admiral Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Admiral Group
The main advantage of trading using opposite CompuGroup Medical and Admiral Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Admiral Group 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 Admiral Group will offset losses from the drop in Admiral Group's long position.| CompuGroup Medical vs. Extra Space Storage | CompuGroup Medical vs. Samsung Electronics Co | CompuGroup Medical vs. Jupiter Fund Management | CompuGroup Medical vs. Datalogic |
| Admiral Group vs. Deltex Medical Group | Admiral Group vs. CompuGroup Medical AG | Admiral Group vs. Smithson Investment Trust | Admiral Group vs. Elmos Semiconductor SE |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |