Correlation Between 24SEVENOFFICE GROUP and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 24SEVENOFFICE GROUP AB and CompuGroup Medical SE, you can compare the effects of market volatilities on 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of 24SEVENOFFICE GROUP and CompuGroup Medical.
Diversification Opportunities for 24SEVENOFFICE GROUP and CompuGroup Medical
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 24SEVENOFFICE and CompuGroup is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding 24SEVENOFFICE GROUP AB and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP AB 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 24SEVENOFFICE GROUP i.e., 24SEVENOFFICE GROUP and CompuGroup Medical go up and down completely randomly.
Pair Corralation between 24SEVENOFFICE GROUP and CompuGroup Medical
Assuming the 90 days horizon 24SEVENOFFICE GROUP is expected to generate 2.95 times less return on investment than CompuGroup Medical. But when comparing it to its historical volatility, 24SEVENOFFICE GROUP AB is 1.17 times less risky than CompuGroup Medical. It trades about 0.07 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 | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
24SEVENOFFICE GROUP AB vs. CompuGroup Medical SE
Performance |
| Timeline |
| 24SEVENOFFICE GROUP |
| CompuGroup Medical |
24SEVENOFFICE GROUP and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 24SEVENOFFICE GROUP and CompuGroup Medical
The main advantage of trading using opposite 24SEVENOFFICE GROUP and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 24SEVENOFFICE GROUP 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.| 24SEVENOFFICE GROUP vs. SINGAPORE AIRLINES | 24SEVENOFFICE GROUP vs. Pentair plc | 24SEVENOFFICE GROUP vs. MYFAIR GOLD P | 24SEVENOFFICE GROUP vs. WIZZ AIR HLDGUNSPADR4 |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets |