Correlation Between Compugroup Medical and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and FRACTAL GAMING 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 FRACTAL GAMING 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 FRACTAL GAMING GROUP, you can compare the effects of market volatilities on Compugroup Medical and FRACTAL GAMING 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 FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and FRACTAL GAMING.
Diversification Opportunities for Compugroup Medical and FRACTAL GAMING
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Compugroup and FRACTAL is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and FRACTAL GAMING GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRACTAL GAMING GROUP 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 FRACTAL GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRACTAL GAMING GROUP has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between Compugroup Medical and FRACTAL GAMING
Assuming the 90 days horizon Compugroup Medical is expected to generate 9.93 times less return on investment than FRACTAL GAMING. But when comparing it to its historical volatility, Compugroup Medical SE is 4.23 times less risky than FRACTAL GAMING. It trades about 0.11 of its potential returns per unit of risk. FRACTAL GAMING GROUP is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 266.00 in FRACTAL GAMING GROUP on October 20, 2024 and sell it today you would earn a total of 30.00 from holding FRACTAL GAMING GROUP or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. FRACTAL GAMING GROUP
Performance |
| Timeline |
| Compugroup Medical |
| FRACTAL GAMING GROUP |
Compugroup Medical and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and FRACTAL GAMING
The main advantage of trading using opposite Compugroup Medical and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, FRACTAL GAMING 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 FRACTAL GAMING will offset losses from the drop in FRACTAL GAMING's long position.| Compugroup Medical vs. ONWARD MEDICAL BV | Compugroup Medical vs. TRAVEL LEISURE DL 01 | Compugroup Medical vs. Genertec Universal Medical | Compugroup Medical vs. Diamyd Medical AB |
| FRACTAL GAMING vs. ONWARD MEDICAL BV | FRACTAL GAMING vs. Compugroup Medical SE | FRACTAL GAMING vs. Xenia Hotels Resorts | FRACTAL GAMING vs. Merit Medical Systems |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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