Correlation Between Compugroup Medical and Coloplast A/S
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By analyzing existing cross correlation between Compugroup Medical SE and Coloplast AS, you can compare the effects of market volatilities on Compugroup Medical and Coloplast A/S 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 Coloplast A/S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and Coloplast A/S.
Diversification Opportunities for Compugroup Medical and Coloplast A/S
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Compugroup and Coloplast is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and Coloplast AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coloplast A/S 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 Coloplast A/S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coloplast A/S has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and Coloplast A/S go up and down completely randomly.
Pair Corralation between Compugroup Medical and Coloplast A/S
Assuming the 90 days horizon Compugroup Medical SE is expected to generate 1.89 times more return on investment than Coloplast A/S. However, Compugroup Medical is 1.89 times more volatile than Coloplast AS. It trades about 0.2 of its potential returns per unit of risk. Coloplast AS is currently generating about 0.02 per unit of risk. If you would invest 1,370 in Compugroup Medical SE on September 5, 2024 and sell it today you would earn a total of 183.00 from holding Compugroup Medical SE or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Compugroup Medical SE vs. Coloplast AS
Performance |
| Timeline |
| Compugroup Medical |
| Coloplast A/S |
Compugroup Medical and Coloplast A/S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and Coloplast A/S
The main advantage of trading using opposite Compugroup Medical and Coloplast A/S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, Coloplast A/S 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 Coloplast A/S will offset losses from the drop in Coloplast A/S's long position.| Compugroup Medical vs. LION ONE METALS | Compugroup Medical vs. Sumitomo Mitsui Construction | Compugroup Medical vs. Titan Machinery | Compugroup Medical vs. AUST AGRICULTURAL |
| Coloplast A/S vs. SCANDMEDICAL SOLDK 040 | Coloplast A/S vs. Compugroup Medical SE | Coloplast A/S vs. Harmony Gold Mining | Coloplast A/S vs. Zijin Mining Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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