Correlation Between Superior Plus and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and CompuGroup Medical SE, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and CompuGroup Medical.
Diversification Opportunities for Superior Plus and CompuGroup Medical
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Superior and CompuGroup is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Superior Plus 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 Superior Plus Corp 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 Superior Plus i.e., Superior Plus and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Superior Plus and CompuGroup Medical
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the CompuGroup Medical. In addition to that, Superior Plus is 2.31 times more volatile than CompuGroup Medical SE. It trades about -0.04 of its total potential returns per unit of risk. CompuGroup Medical SE is currently generating about 0.04 per unit of volatility. If you would invest 1,388 in CompuGroup Medical SE on August 25, 2024 and sell it today you would earn a total of 17.00 from holding CompuGroup Medical SE or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. CompuGroup Medical SE
Performance |
| Timeline |
| Superior Plus Corp |
| CompuGroup Medical |
Superior Plus and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and CompuGroup Medical
The main advantage of trading using opposite Superior Plus and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. Fast Retailing Co | Superior Plus vs. Auto Trader Group | Superior Plus vs. Monster Beverage Corp | Superior Plus vs. Suntory Beverage Food |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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