Correlation Between CompuGroup Medical and OneLife Technologies

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy66.6%
ValuesDaily Returns

CompuGroup Medical SE  vs.  OneLife Technologies Corp

 Performance 
       Timeline  
CompuGroup Medical 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CompuGroup Medical SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
OneLife Technologies Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days OneLife Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

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.
The idea behind CompuGroup Medical SE and OneLife Technologies Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Transaction History
View history of all your transactions and understand their impact on performance
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance