Correlation Between Haier Smart and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Haier Smart 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 Haier Smart and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and CompuGroup Medical SE, you can compare the effects of market volatilities on Haier Smart 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 Haier Smart with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and CompuGroup Medical.
Diversification Opportunities for Haier Smart and CompuGroup Medical
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Haier and CompuGroup is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Haier Smart 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 Haier Smart Home 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 Haier Smart i.e., Haier Smart and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Haier Smart and CompuGroup Medical
Assuming the 90 days trading horizon Haier Smart is expected to generate 2.44 times less return on investment than CompuGroup Medical. But when comparing it to its historical volatility, Haier Smart Home is 2.06 times less risky than CompuGroup Medical. It trades about 0.15 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,376 in CompuGroup Medical SE on September 12, 2024 and sell it today you would earn a total of 810.00 from holding CompuGroup Medical SE or generate 58.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Haier Smart Home vs. CompuGroup Medical SE
Performance |
| Timeline |
| Haier Smart Home |
| CompuGroup Medical |
Haier Smart and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and CompuGroup Medical
The main advantage of trading using opposite Haier Smart and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart 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.| Haier Smart vs. GEAR4MUSIC LS 10 | Haier Smart vs. Grupo Carso SAB | Haier Smart vs. CVR Medical Corp | Haier Smart vs. Cars Inc |
| CompuGroup Medical vs. Evolent Health | CompuGroup Medical vs. Compugroup Medical SE | CompuGroup Medical vs. Superior Plus Corp | CompuGroup Medical vs. NMI Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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