Correlation Between Corsair Gaming and Compugroup Medical
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming 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 Corsair Gaming and Compugroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and Compugroup Medical SE, you can compare the effects of market volatilities on Corsair Gaming 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 Corsair Gaming with a short position of Compugroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and Compugroup Medical.
Diversification Opportunities for Corsair Gaming and Compugroup Medical
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Corsair and Compugroup is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical and Corsair Gaming 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 Corsair Gaming 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 Corsair Gaming i.e., Corsair Gaming and Compugroup Medical go up and down completely randomly.
Pair Corralation between Corsair Gaming and Compugroup Medical
Assuming the 90 days horizon Corsair Gaming is expected to generate 1.1 times more return on investment than Compugroup Medical. However, Corsair Gaming is 1.1 times more volatile than Compugroup Medical SE. It trades about -0.04 of its potential returns per unit of risk. Compugroup Medical SE is currently generating about -0.05 per unit of risk. If you would invest 1,511 in Corsair Gaming on September 3, 2024 and sell it today you would lose (822.00) from holding Corsair Gaming or give up 54.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corsair Gaming vs. Compugroup Medical SE
Performance |
| Timeline |
| Corsair Gaming |
| Compugroup Medical |
Corsair Gaming and Compugroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and Compugroup Medical
The main advantage of trading using opposite Corsair Gaming and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming 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.| Corsair Gaming vs. GOLD ROAD RES | Corsair Gaming vs. Texas Roadhouse | Corsair Gaming vs. BROADSTNET LEADL 00025 | Corsair Gaming vs. Gold Road Resources |
| Compugroup Medical vs. ATRESMEDIA | Compugroup Medical vs. Corsair Gaming | Compugroup Medical vs. Hollywood Bowl Group | Compugroup Medical vs. RCS MediaGroup SpA |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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