Correlation Between Apyx Medical and Compugroup Medical
Can any of the company-specific risk be diversified away by investing in both Apyx Medical 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 Apyx Medical and Compugroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical Corp and Compugroup Medical SE, you can compare the effects of market volatilities on Apyx Medical 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 Apyx Medical with a short position of Compugroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and Compugroup Medical.
Diversification Opportunities for Apyx Medical and Compugroup Medical
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apyx and Compugroup is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical 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 Apyx Medical 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 Apyx Medical 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 Apyx Medical i.e., Apyx Medical and Compugroup Medical go up and down completely randomly.
Pair Corralation between Apyx Medical and Compugroup Medical
Assuming the 90 days trading horizon Apyx Medical Corp is expected to generate 2.6 times more return on investment than Compugroup Medical. However, Apyx Medical is 2.6 times more volatile than Compugroup Medical SE. It trades about 0.25 of its potential returns per unit of risk. Compugroup Medical SE is currently generating about 0.0 per unit of risk. If you would invest 100.00 in Apyx Medical Corp on August 26, 2024 and sell it today you would earn a total of 35.00 from holding Apyx Medical Corp or generate 35.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apyx Medical Corp vs. Compugroup Medical SE
Performance |
| Timeline |
| Apyx Medical Corp |
| Compugroup Medical |
Apyx Medical and Compugroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and Compugroup Medical
The main advantage of trading using opposite Apyx Medical and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical 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.| Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc |
| Compugroup Medical vs. Evolent Health | Compugroup Medical vs. Superior Plus Corp | Compugroup Medical vs. NMI Holdings | Compugroup Medical vs. Origin Agritech |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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