Correlation Between GREENX METALS and Compugroup Medical
Can any of the company-specific risk be diversified away by investing in both GREENX METALS 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 GREENX METALS and Compugroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Compugroup Medical SE, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of Compugroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Compugroup Medical.
Diversification Opportunities for GREENX METALS and Compugroup Medical
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between GREENX and Compugroup is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical and GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and Compugroup Medical go up and down completely randomly.
Pair Corralation between GREENX METALS and Compugroup Medical
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 1.28 times more return on investment than Compugroup Medical. However, GREENX METALS is 1.28 times more volatile than Compugroup Medical SE. It trades about -0.03 of its potential returns per unit of risk. Compugroup Medical SE is currently generating about -0.09 per unit of risk. If you would invest 55.00 in GREENX METALS LTD on August 31, 2024 and sell it today you would lose (14.00) from holding GREENX METALS LTD or give up 25.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Compugroup Medical SE
Performance |
| Timeline |
| GREENX METALS LTD |
| Compugroup Medical |
GREENX METALS and Compugroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Compugroup Medical
The main advantage of trading using opposite GREENX METALS and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. Origin Agritech | GREENX METALS vs. SIVERS SEMICONDUCTORS AB |
| Compugroup Medical vs. Superior Plus Corp | Compugroup Medical vs. NMI Holdings | Compugroup Medical vs. Origin Agritech | Compugroup Medical vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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