Correlation Between Compugroup Medical and 10X GENOMICS
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and 10X GENOMICS 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 10X GENOMICS 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 10X GENOMICS DL, you can compare the effects of market volatilities on Compugroup Medical and 10X GENOMICS 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 10X GENOMICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and 10X GENOMICS.
Diversification Opportunities for Compugroup Medical and 10X GENOMICS
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Compugroup and 10X is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and 10X GENOMICS DL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X GENOMICS DL 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 10X GENOMICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10X GENOMICS DL has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and 10X GENOMICS go up and down completely randomly.
Pair Corralation between Compugroup Medical and 10X GENOMICS
Assuming the 90 days horizon Compugroup Medical SE is expected to generate 0.51 times more return on investment than 10X GENOMICS. However, Compugroup Medical SE is 1.95 times less risky than 10X GENOMICS. It trades about 0.24 of its potential returns per unit of risk. 10X GENOMICS DL is currently generating about 0.01 per unit of risk. If you would invest 1,370 in Compugroup Medical SE on September 4, 2024 and sell it today you would earn a total of 216.00 from holding Compugroup Medical SE or generate 15.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. 10X GENOMICS DL
Performance |
| Timeline |
| Compugroup Medical |
| 10X GENOMICS DL |
Compugroup Medical and 10X GENOMICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and 10X GENOMICS
The main advantage of trading using opposite Compugroup Medical and 10X GENOMICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, 10X GENOMICS 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 10X GENOMICS will offset losses from the drop in 10X GENOMICS's long position.| Compugroup Medical vs. 10X GENOMICS DL | Compugroup Medical vs. Teladoc | Compugroup Medical vs. Evolent Health | Compugroup Medical vs. RLX TECH SPADR1 |
| 10X GENOMICS vs. Zoom Video Communications | 10X GENOMICS vs. INTERSHOP Communications Aktiengesellschaft | 10X GENOMICS vs. Verizon Communications | 10X GENOMICS vs. Cogent Communications Holdings |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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