Correlation Between Walmart and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Walmart 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 Walmart and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and CompuGroup Medical AG, you can compare the effects of market volatilities on Walmart 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 Walmart with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and CompuGroup Medical.
Diversification Opportunities for Walmart and CompuGroup Medical
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walmart and CompuGroup is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and CompuGroup Medical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Walmart 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 Walmart 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 Walmart i.e., Walmart and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Walmart and CompuGroup Medical
If you would invest 1,622 in CompuGroup Medical AG on October 25, 2024 and sell it today you would earn a total of 0.00 from holding CompuGroup Medical AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. CompuGroup Medical AG
Performance |
| Timeline |
| Walmart |
| CompuGroup Medical |
Walmart and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and CompuGroup Medical
The main advantage of trading using opposite Walmart and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart 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.| Walmart vs. Spire Healthcare Group | Walmart vs. Eco Animal Health | Walmart vs. JLEN Environmental Assets | Walmart vs. Foresight Environmental Infrastructure |
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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.
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