Correlation Between CompuGroup Medical and Hong Kong
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Hong Kong 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 Hong Kong 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 Hong Kong Land, you can compare the effects of market volatilities on CompuGroup Medical and Hong Kong 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 Hong Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Hong Kong.
Diversification Opportunities for CompuGroup Medical and Hong Kong
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CompuGroup and Hong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical AG and Hong Kong Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Kong Land 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 Hong Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Kong Land has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Hong Kong go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Hong Kong
If you would invest 1,358 in CompuGroup Medical AG on September 4, 2024 and sell it today you would earn a total of 191.00 from holding CompuGroup Medical AG or generate 14.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CompuGroup Medical AG vs. Hong Kong Land
Performance |
| Timeline |
| CompuGroup Medical |
| Hong Kong Land |
CompuGroup Medical and Hong Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Hong Kong
The main advantage of trading using opposite CompuGroup Medical and Hong Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Hong Kong 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 Hong Kong will offset losses from the drop in Hong Kong's long position.| CompuGroup Medical vs. iShares Physical Silver | CompuGroup Medical vs. Hochschild Mining plc | CompuGroup Medical vs. Cembra Money Bank | CompuGroup Medical vs. Eastinco Mining Exploration |
| Hong Kong vs. Silvercorp Metals | Hong Kong vs. JD Sports Fashion | Hong Kong vs. Greenroc Mining PLC | Hong Kong vs. Martin Marietta Materials |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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