Correlation Between CompuGroup Medical and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Biglari Holdings 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 CompuGroup Medical and Biglari Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CompuGroup Medical SE and Biglari Holdings, you can compare the effects of market volatilities on CompuGroup Medical and Biglari Holdings 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 CompuGroup Medical with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Biglari Holdings.
Diversification Opportunities for CompuGroup Medical and Biglari Holdings
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CompuGroup and Biglari is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and CompuGroup 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 CompuGroup Medical SE are associated (or correlated) with Biglari Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biglari Holdings has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Biglari Holdings go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Biglari Holdings
If you would invest 2,376 in CompuGroup Medical SE on December 24, 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 | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CompuGroup Medical SE vs. Biglari Holdings
Performance |
| Timeline |
| CompuGroup Medical |
| Biglari Holdings |
CompuGroup Medical and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Biglari Holdings
The main advantage of trading using opposite CompuGroup Medical and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Biglari Holdings 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 Biglari Holdings will offset losses from the drop in Biglari Holdings' long position.| CompuGroup Medical vs. Southwest Gas Holdings | CompuGroup Medical vs. WEC Energy Group | CompuGroup Medical vs. MYT Netherlands Parent | CompuGroup Medical vs. Aris Water Solutions |
| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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