Correlation Between Compugroup Medical and Ping An
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and Ping An 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 Ping An 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 Ping An Healthcare, you can compare the effects of market volatilities on Compugroup Medical and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and Ping An.
Diversification Opportunities for Compugroup Medical and Ping An
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Compugroup and Ping is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and Ping An Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Healthcare 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Healthcare has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and Ping An go up and down completely randomly.
Pair Corralation between Compugroup Medical and Ping An
Assuming the 90 days horizon Compugroup Medical SE is expected to under-perform the Ping An. But the stock apears to be less risky and, when comparing its historical volatility, Compugroup Medical SE is 1.43 times less risky than Ping An. The stock trades about -0.03 of its potential returns per unit of risk. The Ping An Healthcare is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 218.00 in Ping An Healthcare on November 27, 2024 and sell it today you would lose (110.00) from holding Ping An Healthcare or give up 50.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. Ping An Healthcare
Performance |
| Timeline |
| Compugroup Medical |
| Ping An Healthcare |
Compugroup Medical and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and Ping An
The main advantage of trading using opposite Compugroup Medical and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| Compugroup Medical vs. Hua Hong Semiconductor | Compugroup Medical vs. Lattice Semiconductor | Compugroup Medical vs. MUTUIONLINE | Compugroup Medical vs. Elmos Semiconductor SE |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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