Correlation Between CompuGroup Medical and Ocean Harvest
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Ocean Harvest 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 Ocean Harvest 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 Ocean Harvest Technology, you can compare the effects of market volatilities on CompuGroup Medical and Ocean Harvest 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 Ocean Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Ocean Harvest.
Diversification Opportunities for CompuGroup Medical and Ocean Harvest
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CompuGroup and Ocean is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical AG and Ocean Harvest Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocean Harvest Technology 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 Ocean Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocean Harvest Technology has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Ocean Harvest go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Ocean Harvest
Assuming the 90 days trading horizon CompuGroup Medical AG is expected to under-perform the Ocean Harvest. But the stock apears to be less risky and, when comparing its historical volatility, CompuGroup Medical AG is 1.31 times less risky than Ocean Harvest. The stock trades about -0.09 of its potential returns per unit of risk. The Ocean Harvest Technology is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,713 in Ocean Harvest Technology on August 24, 2024 and sell it today you would lose (838.00) from holding Ocean Harvest Technology or give up 48.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.76% |
| Values | Daily Returns |
CompuGroup Medical AG vs. Ocean Harvest Technology
Performance |
| Timeline |
| CompuGroup Medical |
| Ocean Harvest Technology |
CompuGroup Medical and Ocean Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Ocean Harvest
The main advantage of trading using opposite CompuGroup Medical and Ocean Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Ocean Harvest 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 Ocean Harvest will offset losses from the drop in Ocean Harvest's long position.| CompuGroup Medical vs. Quadrise Plc | CompuGroup Medical vs. Intuitive Investments Group | CompuGroup Medical vs. European Metals Holdings | CompuGroup Medical vs. Athelney Trust plc |
| Ocean Harvest vs. Invesco Physical Silver | Ocean Harvest vs. Futura Medical | Ocean Harvest vs. CompuGroup Medical AG | Ocean Harvest vs. Solstad Offshore ASA |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |