Correlation Between CompuGroup Medical and Caduceus Software
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Caduceus Software 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 Caduceus Software 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 Caduceus Software Systems, you can compare the effects of market volatilities on CompuGroup Medical and Caduceus Software 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 Caduceus Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Caduceus Software.
Diversification Opportunities for CompuGroup Medical and Caduceus Software
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CompuGroup and Caduceus is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Caduceus Software Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caduceus Software Systems 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 Caduceus Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caduceus Software Systems has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Caduceus Software go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Caduceus Software
Assuming the 90 days horizon CompuGroup Medical SE is expected to generate 0.06 times more return on investment than Caduceus Software. However, CompuGroup Medical SE is 16.46 times less risky than Caduceus Software. It trades about -0.07 of its potential returns per unit of risk. Caduceus Software Systems is currently generating about -0.07 per unit of risk. If you would invest 1,500 in CompuGroup Medical SE on September 1, 2024 and sell it today you would lose (20.00) from holding CompuGroup Medical SE or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CompuGroup Medical SE vs. Caduceus Software Systems
Performance |
| Timeline |
| CompuGroup Medical |
| Caduceus Software Systems |
CompuGroup Medical and Caduceus Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Caduceus Software
The main advantage of trading using opposite CompuGroup Medical and Caduceus Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Caduceus Software 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 Caduceus Software will offset losses from the drop in Caduceus Software's long position.| CompuGroup Medical vs. GE HealthCare Technologies | CompuGroup Medical vs. Veeva Systems Class | CompuGroup Medical vs. Solventum Corp | CompuGroup Medical vs. Doximity |
| Caduceus Software vs. Cloud DX | Caduceus Software vs. Cogstate Limited | Caduceus Software vs. Cognetivity Neurosciences | Caduceus Software vs. Mednow Inc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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