Correlation Between CompuGroup Medical and Medical Cannabis
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Medical Cannabis 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 Medical Cannabis 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 Medical Cannabis Pay, you can compare the effects of market volatilities on CompuGroup Medical and Medical Cannabis 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 Medical Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Medical Cannabis.
Diversification Opportunities for CompuGroup Medical and Medical Cannabis
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CompuGroup and Medical is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Medical Cannabis Pay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Cannabis Pay 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 Medical Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Cannabis Pay has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Medical Cannabis go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Medical Cannabis
Assuming the 90 days horizon CompuGroup Medical SE is expected to under-perform the Medical Cannabis. But the otc stock apears to be less risky and, when comparing its historical volatility, CompuGroup Medical SE is 89.84 times less risky than Medical Cannabis. The otc stock trades about -0.15 of its potential returns per unit of risk. The Medical Cannabis Pay is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Medical Cannabis Pay on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Medical Cannabis Pay or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
CompuGroup Medical SE vs. Medical Cannabis Pay
Performance |
| Timeline |
| CompuGroup Medical |
| Medical Cannabis Pay |
CompuGroup Medical and Medical Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Medical Cannabis
The main advantage of trading using opposite CompuGroup Medical and Medical Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Medical Cannabis 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 Medical Cannabis will offset losses from the drop in Medical Cannabis' long position.| CompuGroup Medical vs. GE HealthCare Technologies | CompuGroup Medical vs. Veeva Systems Class | CompuGroup Medical vs. Solventum Corp | CompuGroup Medical vs. Doximity |
| Medical Cannabis vs. GE HealthCare Technologies | Medical Cannabis vs. Veeva Systems Class | Medical Cannabis vs. Solventum Corp | Medical Cannabis 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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