Correlation Between Compugroup Medical and Pure Storage
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and Pure Storage 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 Pure Storage 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 Pure Storage, you can compare the effects of market volatilities on Compugroup Medical and Pure Storage 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 Pure Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and Pure Storage.
Diversification Opportunities for Compugroup Medical and Pure Storage
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Compugroup and Pure is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and Pure Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Storage 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 Pure Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Storage has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and Pure Storage go up and down completely randomly.
Pair Corralation between Compugroup Medical and Pure Storage
Assuming the 90 days horizon Compugroup Medical SE is expected to generate 1.01 times more return on investment than Pure Storage. However, Compugroup Medical is 1.01 times more volatile than Pure Storage. It trades about 0.24 of its potential returns per unit of risk. Pure Storage is currently generating about 0.16 per unit of risk. If you would invest 1,370 in Compugroup Medical SE on September 3, 2024 and sell it today you would earn a total of 216.00 from holding Compugroup Medical SE or generate 15.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. Pure Storage
Performance |
| Timeline |
| Compugroup Medical |
| Pure Storage |
Compugroup Medical and Pure Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and Pure Storage
The main advantage of trading using opposite Compugroup Medical and Pure Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, Pure Storage 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 Pure Storage will offset losses from the drop in Pure Storage's long position.| Compugroup Medical vs. ATRESMEDIA | Compugroup Medical vs. Corsair Gaming | Compugroup Medical vs. Hollywood Bowl Group | Compugroup Medical vs. RCS MediaGroup SpA |
| Pure Storage vs. Teradata Corp | Pure Storage vs. Superior Plus Corp | Pure Storage vs. NMI Holdings | Pure Storage vs. Origin Agritech |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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