Correlation Between Compugroup Medical and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and Superior Plus 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 Superior Plus 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 Superior Plus Corp, you can compare the effects of market volatilities on Compugroup Medical and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and Superior Plus.
Diversification Opportunities for Compugroup Medical and Superior Plus
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Compugroup and Superior is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and Superior Plus go up and down completely randomly.
Pair Corralation between Compugroup Medical and Superior Plus
Assuming the 90 days horizon Compugroup Medical SE is expected to generate 0.57 times more return on investment than Superior Plus. However, Compugroup Medical SE is 1.75 times less risky than Superior Plus. It trades about 0.13 of its potential returns per unit of risk. Superior Plus Corp is currently generating about 0.02 per unit of risk. If you would invest 1,396 in Compugroup Medical SE on August 30, 2024 and sell it today you would earn a total of 108.00 from holding Compugroup Medical SE or generate 7.74% 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. Superior Plus Corp
Performance |
| Timeline |
| Compugroup Medical |
| Superior Plus Corp |
Compugroup Medical and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and Superior Plus
The main advantage of trading using opposite Compugroup Medical and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Compugroup Medical vs. Evolent Health | Compugroup Medical vs. CompuGroup Medical SE | Compugroup Medical vs. Superior Plus Corp | Compugroup Medical vs. NMI Holdings |
| Superior Plus vs. HYDROFARM HLD GRP | Superior Plus vs. Titan Machinery | Superior Plus vs. GOODYEAR T RUBBER | Superior Plus vs. Sterling Construction |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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