Correlation Between Compugroup Medical and MeVis Medical
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and MeVis 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 MeVis 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 MeVis Medical Solutions, you can compare the effects of market volatilities on Compugroup Medical and MeVis 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 MeVis Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and MeVis Medical.
Diversification Opportunities for Compugroup Medical and MeVis Medical
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Compugroup and MeVis is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and MeVis Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MeVis Medical Solutions 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 MeVis Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MeVis Medical Solutions has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and MeVis Medical go up and down completely randomly.
Pair Corralation between Compugroup Medical and MeVis Medical
Assuming the 90 days horizon Compugroup Medical SE is expected to under-perform the MeVis Medical. In addition to that, Compugroup Medical is 2.87 times more volatile than MeVis Medical Solutions. It trades about -0.01 of its total potential returns per unit of risk. MeVis Medical Solutions is currently generating about 0.0 per unit of volatility. If you would invest 2,400 in MeVis Medical Solutions on August 28, 2024 and sell it today you would earn a total of 0.00 from holding MeVis Medical Solutions or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Compugroup Medical SE vs. MeVis Medical Solutions
Performance |
| Timeline |
| Compugroup Medical |
| MeVis Medical Solutions |
Compugroup Medical and MeVis Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and MeVis Medical
The main advantage of trading using opposite Compugroup Medical and MeVis Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, MeVis 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 MeVis Medical will offset losses from the drop in MeVis Medical's 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 |
| MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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