Correlation Between Compugroup Medical and Associated British
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and Associated British 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 Associated British 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 Associated British Foods, you can compare the effects of market volatilities on Compugroup Medical and Associated British 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 Associated British. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and Associated British.
Diversification Opportunities for Compugroup Medical and Associated British
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Compugroup and Associated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and Associated British Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated British Foods 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 Associated British. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated British Foods has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and Associated British go up and down completely randomly.
Pair Corralation between Compugroup Medical and Associated British
If you would invest 2,170 in Compugroup Medical SE on November 3, 2024 and sell it today you would earn a total of 154.00 from holding Compugroup Medical SE or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Compugroup Medical SE vs. Associated British Foods
Performance |
| Timeline |
| Compugroup Medical |
| Associated British Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Compugroup Medical and Associated British Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and Associated British
The main advantage of trading using opposite Compugroup Medical and Associated British positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, Associated British 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 Associated British will offset losses from the drop in Associated British's long position.| Compugroup Medical vs. TRADEGATE | Compugroup Medical vs. PT Steel Pipe | Compugroup Medical vs. The Japan Steel | Compugroup Medical vs. CANON MARKETING JP |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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