Correlation Between Compugroup Medical and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and Apyx 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 Apyx 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 Apyx Medical Corp, you can compare the effects of market volatilities on Compugroup Medical and Apyx 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 Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and Apyx Medical.
Diversification Opportunities for Compugroup Medical and Apyx Medical
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Compugroup and Apyx is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and Apyx Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx 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 Apyx Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apyx Medical Corp has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and Apyx Medical go up and down completely randomly.
Pair Corralation between Compugroup Medical and Apyx Medical
Assuming the 90 days horizon Compugroup Medical is expected to generate 360.44 times less return on investment than Apyx Medical. But when comparing it to its historical volatility, Compugroup Medical SE is 2.6 times less risky than Apyx Medical. It trades about 0.0 of its potential returns per unit of risk. Apyx Medical Corp is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Apyx Medical Corp on August 26, 2024 and sell it today you would earn a total of 35.00 from holding Apyx Medical Corp or generate 35.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. Apyx Medical Corp
Performance |
| Timeline |
| Compugroup Medical |
| Apyx Medical Corp |
Compugroup Medical and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and Apyx Medical
The main advantage of trading using opposite Compugroup Medical and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, Apyx 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 Apyx Medical will offset losses from the drop in Apyx Medical's long position.| Compugroup Medical vs. Evolent Health | Compugroup Medical vs. Superior Plus Corp | Compugroup Medical vs. NMI Holdings | Compugroup Medical vs. Origin Agritech |
| Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |