Correlation Between Compugroup Medical and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and Apollo Investment 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 Apollo Investment 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 Apollo Investment Corp, you can compare the effects of market volatilities on Compugroup Medical and Apollo Investment 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 Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and Apollo Investment.
Diversification Opportunities for Compugroup Medical and Apollo Investment
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Compugroup and Apollo is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp 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 Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and Apollo Investment go up and down completely randomly.
Pair Corralation between Compugroup Medical and Apollo Investment
Assuming the 90 days horizon Compugroup Medical SE is expected to generate 10.17 times more return on investment than Apollo Investment. However, Compugroup Medical is 10.17 times more volatile than Apollo Investment Corp. It trades about 0.3 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.0 per unit of risk. If you would invest 1,396 in Compugroup Medical SE on September 22, 2024 and sell it today you would earn a total of 776.00 from holding Compugroup Medical SE or generate 55.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. Apollo Investment Corp
Performance |
| Timeline |
| Compugroup Medical |
| Apollo Investment Corp |
Compugroup Medical and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and Apollo Investment
The main advantage of trading using opposite Compugroup Medical and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, Apollo Investment 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 Apollo Investment will offset losses from the drop in Apollo Investment's long position.| Compugroup Medical vs. Veeva Systems | Compugroup Medical vs. 10X GENOMICS DL | Compugroup Medical vs. Healthequity | Compugroup Medical vs. Teladoc |
| Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. SIVERS SEMICONDUCTORS AB | Apollo Investment vs. CHINA HUARONG ENERHD 50 | Apollo Investment vs. NORDIC HALIBUT AS |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |