Correlation Between Batm Advanced and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Batm Advanced 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 Batm Advanced and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Batm Advanced Communications and CompuGroup Medical AG, you can compare the effects of market volatilities on Batm Advanced 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 Batm Advanced with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and CompuGroup Medical.
Diversification Opportunities for Batm Advanced and CompuGroup Medical
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Batm and CompuGroup is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and CompuGroup Medical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Batm Advanced 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 Batm Advanced Communications 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 Batm Advanced i.e., Batm Advanced and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Batm Advanced and CompuGroup Medical
Assuming the 90 days trading horizon Batm Advanced Communications is expected to generate 1.14 times more return on investment than CompuGroup Medical. However, Batm Advanced is 1.14 times more volatile than CompuGroup Medical AG. It trades about 0.13 of its potential returns per unit of risk. CompuGroup Medical AG is currently generating about 0.09 per unit of risk. If you would invest 1,800 in Batm Advanced Communications on August 28, 2024 and sell it today you would earn a total of 130.00 from holding Batm Advanced Communications or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Batm Advanced Communications vs. CompuGroup Medical AG
Performance |
| Timeline |
| Batm Advanced Commun |
| CompuGroup Medical |
Batm Advanced and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and CompuGroup Medical
The main advantage of trading using opposite Batm Advanced and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced 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.| Batm Advanced vs. Delta Air Lines | Batm Advanced vs. Applied Materials | Batm Advanced vs. Check Point Software | Batm Advanced vs. Cairn Homes PLC |
| CompuGroup Medical vs. Check Point Software | CompuGroup Medical vs. Pfeiffer Vacuum Technology | CompuGroup Medical vs. Grieg Seafood | CompuGroup Medical vs. Tyson Foods Cl |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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