Correlation Between CompuGroup Medical and Healthcare Integrated
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Healthcare Integrated 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 Healthcare Integrated 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 Healthcare Integrated Technologies, you can compare the effects of market volatilities on CompuGroup Medical and Healthcare Integrated 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 Healthcare Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Healthcare Integrated.
Diversification Opportunities for CompuGroup Medical and Healthcare Integrated
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CompuGroup and Healthcare is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Healthcare Integrated Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare Integrated 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 Healthcare Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare Integrated has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Healthcare Integrated go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Healthcare Integrated
Assuming the 90 days horizon CompuGroup Medical SE is expected to generate 0.12 times more return on investment than Healthcare Integrated. However, CompuGroup Medical SE is 8.58 times less risky than Healthcare Integrated. It trades about -0.07 of its potential returns per unit of risk. Healthcare Integrated Technologies is currently generating about -0.14 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical SE vs. Healthcare Integrated Technolo
Performance |
| Timeline |
| CompuGroup Medical |
| Healthcare Integrated |
CompuGroup Medical and Healthcare Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Healthcare Integrated
The main advantage of trading using opposite CompuGroup Medical and Healthcare Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Healthcare Integrated 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 Healthcare Integrated will offset losses from the drop in Healthcare Integrated's long position.| CompuGroup Medical vs. GE HealthCare Technologies | CompuGroup Medical vs. Veeva Systems Class | CompuGroup Medical vs. Solventum Corp | CompuGroup Medical vs. Doximity |
| Healthcare Integrated vs. GE HealthCare Technologies | Healthcare Integrated vs. Veeva Systems Class | Healthcare Integrated vs. Solventum Corp | Healthcare Integrated vs. Doximity |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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