Correlation Between Compugroup Medical and PT Ace
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and PT Ace 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 PT Ace 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 PT Ace Hardware, you can compare the effects of market volatilities on Compugroup Medical and PT Ace 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 PT Ace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and PT Ace.
Diversification Opportunities for Compugroup Medical and PT Ace
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Compugroup and 4AH1 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and PT Ace Hardware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Ace Hardware 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 PT Ace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Ace Hardware has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and PT Ace go up and down completely randomly.
Pair Corralation between Compugroup Medical and PT Ace
Assuming the 90 days horizon Compugroup Medical SE is expected to under-perform the PT Ace. But the stock apears to be less risky and, when comparing its historical volatility, Compugroup Medical SE is 2.14 times less risky than PT Ace. The stock trades about 0.0 of its potential returns per unit of risk. The PT Ace Hardware is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4.10 in PT Ace Hardware on September 24, 2024 and sell it today you would lose (0.15) from holding PT Ace Hardware or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. PT Ace Hardware
Performance |
| Timeline |
| Compugroup Medical |
| PT Ace Hardware |
Compugroup Medical and PT Ace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and PT Ace
The main advantage of trading using opposite Compugroup Medical and PT Ace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, PT Ace 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 PT Ace will offset losses from the drop in PT Ace's long position.| Compugroup Medical vs. Veeva Systems | Compugroup Medical vs. 10X GENOMICS DL | Compugroup Medical vs. Healthequity | Compugroup Medical vs. Teladoc |
| PT Ace vs. Compugroup Medical SE | PT Ace vs. Solstad Offshore ASA | PT Ace vs. MeVis Medical Solutions | PT Ace vs. ONWARD MEDICAL BV |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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