Correlation Between CompuGroup Medical and Doximity
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Doximity 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 Doximity 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 Doximity, you can compare the effects of market volatilities on CompuGroup Medical and Doximity 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 Doximity. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Doximity.
Diversification Opportunities for CompuGroup Medical and Doximity
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between CompuGroup and Doximity is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Doximity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doximity 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 Doximity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doximity has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Doximity go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Doximity
Assuming the 90 days horizon CompuGroup Medical SE is expected to under-perform the Doximity. In addition to that, CompuGroup Medical is 1.11 times more volatile than Doximity. It trades about -0.05 of its total potential returns per unit of risk. Doximity is currently generating about 0.05 per unit of volatility. If you would invest 3,411 in Doximity on September 12, 2024 and sell it today you would earn a total of 1,879 from holding Doximity or generate 55.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 53.41% |
| Values | Daily Returns |
CompuGroup Medical SE vs. Doximity
Performance |
| Timeline |
| CompuGroup Medical |
| Doximity |
CompuGroup Medical and Doximity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Doximity
The main advantage of trading using opposite CompuGroup Medical and Doximity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Doximity 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 Doximity will offset losses from the drop in Doximity's long position.| CompuGroup Medical vs. Veeva Systems Class | CompuGroup Medical vs. GE HealthCare Technologies | CompuGroup Medical vs. M3 Inc | CompuGroup Medical vs. Solventum Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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