Correlation Between Compugroup Medical and Visa
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By analyzing existing cross correlation between Compugroup Medical SE and Visa Inc, you can compare the effects of market volatilities on Compugroup Medical and Visa 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 Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and Visa.
Diversification Opportunities for Compugroup Medical and Visa
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Compugroup and Visa is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and Visa Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Inc 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 Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Inc has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and Visa go up and down completely randomly.
Pair Corralation between Compugroup Medical and Visa
Assuming the 90 days horizon Compugroup Medical SE is expected to under-perform the Visa. In addition to that, Compugroup Medical is 3.23 times more volatile than Visa Inc. It trades about -0.04 of its total potential returns per unit of risk. Visa Inc is currently generating about 0.09 per unit of volatility. If you would invest 21,671 in Visa Inc on September 12, 2024 and sell it today you would earn a total of 7,969 from holding Visa Inc or generate 36.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. Visa Inc
Performance |
| Timeline |
| Compugroup Medical |
| Visa Inc |
Compugroup Medical and Visa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and Visa
The main advantage of trading using opposite Compugroup Medical and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, Visa 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 Visa will offset losses from the drop in Visa's long position.| Compugroup Medical vs. Evolent Health | Compugroup Medical vs. CompuGroup Medical SE | Compugroup Medical vs. Superior Plus Corp | Compugroup Medical vs. NMI 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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