Correlation Between CompuGroup Medical and OneLife Technologies
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and OneLife Technologies 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 OneLife Technologies 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 OneLife Technologies Corp, you can compare the effects of market volatilities on CompuGroup Medical and OneLife Technologies 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 OneLife Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and OneLife Technologies.
Diversification Opportunities for CompuGroup Medical and OneLife Technologies
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CompuGroup and OneLife is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and OneLife Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneLife Technologies Corp 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 OneLife Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneLife Technologies Corp has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and OneLife Technologies go up and down completely randomly.
Pair Corralation between CompuGroup Medical and OneLife Technologies
Assuming the 90 days horizon CompuGroup Medical SE is expected to under-perform the OneLife Technologies. But the otc stock apears to be less risky and, when comparing its historical volatility, CompuGroup Medical SE is 1.45 times less risky than OneLife Technologies. The otc stock trades about -0.08 of its potential returns per unit of risk. The OneLife Technologies Corp is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 0.01 in OneLife Technologies Corp on September 3, 2024 and sell it today you would lose (0.01) from holding OneLife Technologies Corp or give up 100.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 66.6% |
Values | Daily Returns |
CompuGroup Medical SE vs. OneLife Technologies Corp
Performance |
Timeline |
CompuGroup Medical |
OneLife Technologies Corp |
CompuGroup Medical and OneLife Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CompuGroup Medical and OneLife Technologies
The main advantage of trading using opposite CompuGroup Medical and OneLife Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, OneLife Technologies 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 OneLife Technologies will offset losses from the drop in OneLife Technologies' long position.CompuGroup Medical vs. GE HealthCare Technologies | CompuGroup Medical vs. Veeva Systems Class | CompuGroup Medical vs. Solventum Corp | CompuGroup Medical vs. Doximity |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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