Correlation Between Compugroup Medical and INTERSHOP Communications
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By analyzing existing cross correlation between Compugroup Medical SE and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Compugroup Medical and INTERSHOP Communications 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 INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and INTERSHOP Communications.
Diversification Opportunities for Compugroup Medical and INTERSHOP Communications
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Compugroup and INTERSHOP is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications 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 INTERSHOP Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERSHOP Communications has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Compugroup Medical and INTERSHOP Communications
Assuming the 90 days horizon Compugroup Medical SE is expected to generate 2.6 times more return on investment than INTERSHOP Communications. However, Compugroup Medical is 2.6 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.19 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about 0.02 per unit of risk. If you would invest 1,405 in Compugroup Medical SE on September 21, 2024 and sell it today you would earn a total of 735.00 from holding Compugroup Medical SE or generate 52.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Compugroup Medical |
| INTERSHOP Communications |
Compugroup Medical and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and INTERSHOP Communications
The main advantage of trading using opposite Compugroup Medical and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, INTERSHOP Communications 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 INTERSHOP Communications will offset losses from the drop in INTERSHOP Communications' long position.| Compugroup Medical vs. Evolent Health | Compugroup Medical vs. CompuGroup Medical SE | Compugroup Medical vs. Superior Plus Corp | Compugroup Medical vs. NMI Holdings |
| INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA | INTERSHOP Communications vs. Reliance Steel Aluminum |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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