Correlation Between Compugroup Medical and CVR Medical
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and CVR Medical 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 CVR Medical 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 CVR Medical Corp, you can compare the effects of market volatilities on Compugroup Medical and CVR Medical 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 CVR Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and CVR Medical.
Diversification Opportunities for Compugroup Medical and CVR Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Compugroup and CVR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and CVR Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVR Medical 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 CVR Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVR Medical Corp has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and CVR Medical go up and down completely randomly.
Pair Corralation between Compugroup Medical and CVR Medical
If you would invest 1,417 in Compugroup Medical SE on August 29, 2024 and sell it today you would earn a total of 87.00 from holding Compugroup Medical SE or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. CVR Medical Corp
Performance |
| Timeline |
| Compugroup Medical |
| CVR Medical Corp |
Compugroup Medical and CVR Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and CVR Medical
The main advantage of trading using opposite Compugroup Medical and CVR Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, CVR Medical 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 CVR Medical will offset losses from the drop in CVR Medical's long position.| Compugroup Medical vs. Evolent Health | Compugroup Medical vs. CompuGroup Medical SE | Compugroup Medical vs. Superior Plus Corp | Compugroup Medical vs. NMI Holdings |
| CVR Medical vs. Apple Inc | CVR Medical vs. Apple Inc | CVR Medical vs. Apple Inc | CVR Medical vs. Apple Inc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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