Correlation Between Compugroup Medical and BlackRock
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and BlackRock 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 BlackRock 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 BlackRock, you can compare the effects of market volatilities on Compugroup Medical and BlackRock 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 BlackRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and BlackRock.
Diversification Opportunities for Compugroup Medical and BlackRock
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Compugroup and BlackRock is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and BlackRock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock 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 BlackRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and BlackRock go up and down completely randomly.
Pair Corralation between Compugroup Medical and BlackRock
Assuming the 90 days horizon Compugroup Medical SE is expected to under-perform the BlackRock. In addition to that, Compugroup Medical is 2.72 times more volatile than BlackRock. It trades about -0.09 of its total potential returns per unit of risk. BlackRock is currently generating about 0.18 per unit of volatility. If you would invest 70,851 in BlackRock on September 3, 2024 and sell it today you would earn a total of 26,799 from holding BlackRock or generate 37.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.34% |
| Values | Daily Returns |
Compugroup Medical SE vs. BlackRock
Performance |
| Timeline |
| Compugroup Medical |
| BlackRock |
Compugroup Medical and BlackRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and BlackRock
The main advantage of trading using opposite Compugroup Medical and BlackRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, BlackRock 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 BlackRock will offset losses from the drop in BlackRock's long position.| Compugroup Medical vs. ATRESMEDIA | Compugroup Medical vs. Corsair Gaming | Compugroup Medical vs. Hollywood Bowl Group | Compugroup Medical vs. RCS MediaGroup SpA |
| BlackRock vs. Mitsubishi Materials | BlackRock vs. Vulcan Materials | BlackRock vs. GOODYEAR T RUBBER | BlackRock vs. Summit Materials |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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