Correlation Between KOOL2PLAY and Compugroup Medical
Can any of the company-specific risk be diversified away by investing in both KOOL2PLAY 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 KOOL2PLAY and Compugroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KOOL2PLAY SA ZY and Compugroup Medical SE, you can compare the effects of market volatilities on KOOL2PLAY 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 KOOL2PLAY with a short position of Compugroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOOL2PLAY and Compugroup Medical.
Diversification Opportunities for KOOL2PLAY and Compugroup Medical
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KOOL2PLAY and Compugroup is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding KOOL2PLAY SA ZY and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical and KOOL2PLAY 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 KOOL2PLAY SA ZY 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 KOOL2PLAY i.e., KOOL2PLAY and Compugroup Medical go up and down completely randomly.
Pair Corralation between KOOL2PLAY and Compugroup Medical
Assuming the 90 days horizon KOOL2PLAY SA ZY is expected to generate 15.21 times more return on investment than Compugroup Medical. However, KOOL2PLAY is 15.21 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 0.16 per unit of risk. If you would invest 16.00 in KOOL2PLAY SA ZY on October 25, 2024 and sell it today you would earn a total of 0.00 from holding KOOL2PLAY SA ZY or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KOOL2PLAY SA ZY vs. Compugroup Medical SE
Performance |
| Timeline |
| KOOL2PLAY SA ZY |
| Compugroup Medical |
KOOL2PLAY and Compugroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KOOL2PLAY and Compugroup Medical
The main advantage of trading using opposite KOOL2PLAY and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KOOL2PLAY 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.| KOOL2PLAY vs. NEXON Co | KOOL2PLAY vs. NEXON Co | KOOL2PLAY vs. Take Two Interactive Software | KOOL2PLAY vs. Aristocrat Leisure Limited |
| Compugroup Medical vs. REINET INVESTMENTS SCA | Compugroup Medical vs. SEI INVESTMENTS | Compugroup Medical vs. PennantPark Investment | Compugroup Medical vs. G8 EDUCATION |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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