Correlation Between Ping An and COMPUGROUP MEDSPADR
Can any of the company-specific risk be diversified away by investing in both Ping An and COMPUGROUP MEDSPADR 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 Ping An and COMPUGROUP MEDSPADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ping An Healthcare and COMPUGROUP MEDSPADR 1, you can compare the effects of market volatilities on Ping An and COMPUGROUP MEDSPADR 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 Ping An with a short position of COMPUGROUP MEDSPADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and COMPUGROUP MEDSPADR.
Diversification Opportunities for Ping An and COMPUGROUP MEDSPADR
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ping and COMPUGROUP is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Healthcare and COMPUGROUP MEDSPADR 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMPUGROUP MEDSPADR and Ping An 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 Ping An Healthcare are associated (or correlated) with COMPUGROUP MEDSPADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMPUGROUP MEDSPADR has no effect on the direction of Ping An i.e., Ping An and COMPUGROUP MEDSPADR go up and down completely randomly.
Pair Corralation between Ping An and COMPUGROUP MEDSPADR
Assuming the 90 days horizon Ping An Healthcare is expected to under-perform the COMPUGROUP MEDSPADR. In addition to that, Ping An is 1.34 times more volatile than COMPUGROUP MEDSPADR 1. It trades about -0.05 of its total potential returns per unit of risk. COMPUGROUP MEDSPADR 1 is currently generating about 0.16 per unit of volatility. If you would invest 1,310 in COMPUGROUP MEDSPADR 1 on November 1, 2024 and sell it today you would earn a total of 930.00 from holding COMPUGROUP MEDSPADR 1 or generate 70.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Healthcare vs. COMPUGROUP MEDSPADR 1
Performance |
| Timeline |
| Ping An Healthcare |
| COMPUGROUP MEDSPADR |
Ping An and COMPUGROUP MEDSPADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and COMPUGROUP MEDSPADR
The main advantage of trading using opposite Ping An and COMPUGROUP MEDSPADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, COMPUGROUP MEDSPADR 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 MEDSPADR will offset losses from the drop in COMPUGROUP MEDSPADR's long position.| Ping An vs. Veeva Systems | Ping An vs. Teladoc | Ping An vs. Evolent Health | Ping An vs. CompuGroup Medical SE |
| COMPUGROUP MEDSPADR vs. Veeva Systems | COMPUGROUP MEDSPADR vs. Teladoc | COMPUGROUP MEDSPADR vs. Evolent Health | COMPUGROUP MEDSPADR vs. CompuGroup Medical 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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