Correlation Between CompuGroup Medical and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Catalyst Media 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 Catalyst Media 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 Catalyst Media Group, you can compare the effects of market volatilities on CompuGroup Medical and Catalyst Media 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 Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Catalyst Media.
Diversification Opportunities for CompuGroup Medical and Catalyst Media
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between CompuGroup and Catalyst is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical AG and Catalyst Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Media Group 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 Catalyst Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Media Group has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Catalyst Media go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Catalyst Media
Assuming the 90 days trading horizon CompuGroup Medical AG is expected to under-perform the Catalyst Media. In addition to that, CompuGroup Medical is 2.05 times more volatile than Catalyst Media Group. It trades about -0.1 of its total potential returns per unit of risk. Catalyst Media Group is currently generating about -0.01 per unit of volatility. If you would invest 10,250 in Catalyst Media Group on August 27, 2024 and sell it today you would lose (600.00) from holding Catalyst Media Group or give up 5.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical AG vs. Catalyst Media Group
Performance |
| Timeline |
| CompuGroup Medical |
| Catalyst Media Group |
CompuGroup Medical and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Catalyst Media
The main advantage of trading using opposite CompuGroup Medical and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Catalyst Media 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 Catalyst Media will offset losses from the drop in Catalyst Media's long position.| CompuGroup Medical vs. Samsung Electronics Co | CompuGroup Medical vs. Samsung Electronics Co | CompuGroup Medical vs. Hyundai Motor | CompuGroup Medical vs. Toyota Motor Corp |
| Catalyst Media vs. Toyota Motor Corp | Catalyst Media vs. SoftBank Group Corp | Catalyst Media vs. Fannie Mae | Catalyst Media vs. State Bank of |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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