Correlation Between Compugroup Medical and HYATT HOTELS
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and HYATT HOTELS 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 HYATT HOTELS 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 HYATT HOTELS A, you can compare the effects of market volatilities on Compugroup Medical and HYATT HOTELS 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 HYATT HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and HYATT HOTELS.
Diversification Opportunities for Compugroup Medical and HYATT HOTELS
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Compugroup and HYATT is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and HYATT HOTELS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYATT HOTELS A 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 HYATT HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYATT HOTELS A has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and HYATT HOTELS go up and down completely randomly.
Pair Corralation between Compugroup Medical and HYATT HOTELS
Assuming the 90 days horizon Compugroup Medical SE is expected to generate 1.16 times more return on investment than HYATT HOTELS. However, Compugroup Medical is 1.16 times more volatile than HYATT HOTELS A. It trades about 0.26 of its potential returns per unit of risk. HYATT HOTELS A is currently generating about 0.07 per unit of risk. If you would invest 1,382 in Compugroup Medical SE on September 1, 2024 and sell it today you would earn a total of 237.00 from holding Compugroup Medical SE or generate 17.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. HYATT HOTELS A
Performance |
| Timeline |
| Compugroup Medical |
| HYATT HOTELS A |
Compugroup Medical and HYATT HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and HYATT HOTELS
The main advantage of trading using opposite Compugroup Medical and HYATT HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, HYATT HOTELS 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 HYATT HOTELS will offset losses from the drop in HYATT HOTELS's long position.| Compugroup Medical vs. Reliance Steel Aluminum | Compugroup Medical vs. LEGACY IRON ORE | Compugroup Medical vs. THAI BEVERAGE | Compugroup Medical vs. United States Steel |
| HYATT HOTELS vs. SIVERS SEMICONDUCTORS AB | HYATT HOTELS vs. Darden Restaurants | HYATT HOTELS vs. Reliance Steel Aluminum | HYATT HOTELS vs. Q2M Managementberatung AG |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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