Correlation Between CompuGroup Medical and HealthEquity
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and HealthEquity 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 HealthEquity 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 HealthEquity, you can compare the effects of market volatilities on CompuGroup Medical and HealthEquity 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 HealthEquity. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and HealthEquity.
Diversification Opportunities for CompuGroup Medical and HealthEquity
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CompuGroup and HealthEquity is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and HealthEquity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HealthEquity 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 HealthEquity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HealthEquity has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and HealthEquity go up and down completely randomly.
Pair Corralation between CompuGroup Medical and HealthEquity
Assuming the 90 days horizon CompuGroup Medical SE is expected to generate 3.77 times more return on investment than HealthEquity. However, CompuGroup Medical is 3.77 times more volatile than HealthEquity. It trades about 0.3 of its potential returns per unit of risk. HealthEquity is currently generating about -0.06 per unit of risk. If you would invest 1,449 in CompuGroup Medical SE on September 13, 2024 and sell it today you would earn a total of 861.00 from holding CompuGroup Medical SE or generate 59.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CompuGroup Medical SE vs. HealthEquity
Performance |
| Timeline |
| CompuGroup Medical |
| HealthEquity |
CompuGroup Medical and HealthEquity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and HealthEquity
The main advantage of trading using opposite CompuGroup Medical and HealthEquity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, HealthEquity 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 HealthEquity will offset losses from the drop in HealthEquity's long position.| CompuGroup Medical vs. Montauk Renewables | CompuGroup Medical vs. Getty Images Holdings | CompuGroup Medical vs. National CineMedia | CompuGroup Medical vs. Integral Ad Science |
| HealthEquity vs. Ollies Bargain Outlet | HealthEquity vs. Appfolio | HealthEquity vs. Grand Canyon Education | HealthEquity vs. Globus Medical |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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