Correlation Between Aldel Financial and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Aldel Financial 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 Aldel Financial and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and CompuGroup Medical SE, you can compare the effects of market volatilities on Aldel Financial 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 Aldel Financial with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and CompuGroup Medical.
Diversification Opportunities for Aldel Financial and CompuGroup Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aldel and CompuGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Aldel Financial 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 Aldel Financial II 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 Aldel Financial i.e., Aldel Financial and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Aldel Financial and CompuGroup Medical
If you would invest 1,804 in CompuGroup Medical SE on September 12, 2024 and sell it today you would earn a total of 0.00 from holding CompuGroup Medical SE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 54.69% |
| Values | Daily Returns |
Aldel Financial II vs. CompuGroup Medical SE
Performance |
| Timeline |
| Aldel Financial II |
| CompuGroup Medical |
Aldel Financial and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and CompuGroup Medical
The main advantage of trading using opposite Aldel Financial and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial 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.| Aldel Financial vs. Distoken Acquisition | Aldel Financial vs. Voyager Acquisition Corp | Aldel Financial vs. dMY Squared Technology | Aldel Financial vs. YHN Acquisition I |
| CompuGroup Medical vs. Digi International | CompuGroup Medical vs. BCE Inc | CompuGroup Medical vs. Brenmiller Energy Ltd | CompuGroup Medical vs. Reservoir Media |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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