Correlation Between Compugroup Medical and Host Hotels
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and Host Hotels 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 Host Hotels 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 Host Hotels Resorts, you can compare the effects of market volatilities on Compugroup Medical and Host Hotels 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 Host Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and Host Hotels.
Diversification Opportunities for Compugroup Medical and Host Hotels
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Compugroup and Host is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and Host Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Host Hotels Resorts 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 Host Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Host Hotels Resorts has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and Host Hotels go up and down completely randomly.
Pair Corralation between Compugroup Medical and Host Hotels
Assuming the 90 days horizon Compugroup Medical SE is expected to under-perform the Host Hotels. In addition to that, Compugroup Medical is 1.06 times more volatile than Host Hotels Resorts. It trades about -0.01 of its total potential returns per unit of risk. Host Hotels Resorts is currently generating about 0.14 per unit of volatility. If you would invest 1,610 in Host Hotels Resorts on August 28, 2024 and sell it today you would earn a total of 110.00 from holding Host Hotels Resorts or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Compugroup Medical SE vs. Host Hotels Resorts
Performance |
| Timeline |
| Compugroup Medical |
| Host Hotels Resorts |
Compugroup Medical and Host Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and Host Hotels
The main advantage of trading using opposite Compugroup Medical and Host Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, Host Hotels 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 Host Hotels will offset losses from the drop in Host Hotels' long position.| Compugroup Medical vs. PTT Global Chemical | Compugroup Medical vs. NIPPON STEEL SPADR | Compugroup Medical vs. COSMOSTEEL HLDGS | Compugroup Medical vs. Khiron Life Sciences |
| Host Hotels vs. VIAPLAY GROUP AB | Host Hotels vs. CVW CLEANTECH INC | Host Hotels vs. COLUMBIA SPORTSWEAR | Host Hotels vs. ANTA SPORTS PRODUCT |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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