Correlation Between Compugroup Medical and Teladoc
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and Teladoc 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 Teladoc 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 Teladoc, you can compare the effects of market volatilities on Compugroup Medical and Teladoc 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 Teladoc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and Teladoc.
Diversification Opportunities for Compugroup Medical and Teladoc
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Compugroup and Teladoc is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and Teladoc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teladoc 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 Teladoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teladoc has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and Teladoc go up and down completely randomly.
Pair Corralation between Compugroup Medical and Teladoc
Assuming the 90 days horizon Compugroup Medical is expected to generate 7.88 times less return on investment than Teladoc. But when comparing it to its historical volatility, Compugroup Medical SE is 1.94 times less risky than Teladoc. It trades about 0.05 of its potential returns per unit of risk. Teladoc is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 750.00 in Teladoc on August 29, 2024 and sell it today you would earn a total of 350.00 from holding Teladoc or generate 46.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Compugroup Medical SE vs. Teladoc
Performance |
| Timeline |
| Compugroup Medical |
| Teladoc |
Compugroup Medical and Teladoc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and Teladoc
The main advantage of trading using opposite Compugroup Medical and Teladoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, Teladoc 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 Teladoc will offset losses from the drop in Teladoc'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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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