Correlation Between Compugroup Medical and OFFICE DEPOT
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT, you can compare the effects of market volatilities on Compugroup Medical and OFFICE DEPOT 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 OFFICE DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and OFFICE DEPOT.
Diversification Opportunities for Compugroup Medical and OFFICE DEPOT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Compugroup and OFFICE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and OFFICE DEPOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICE DEPOT 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 OFFICE DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICE DEPOT has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and OFFICE DEPOT go up and down completely randomly.
Pair Corralation between Compugroup Medical and OFFICE DEPOT
If you would invest 2,458 in Compugroup Medical SE on October 13, 2024 and sell it today you would lose (258.00) from holding Compugroup Medical SE or give up 10.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. OFFICE DEPOT
Performance |
| Timeline |
| Compugroup Medical |
| OFFICE DEPOT |
Compugroup Medical and OFFICE DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and OFFICE DEPOT
The main advantage of trading using opposite Compugroup Medical and OFFICE DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, OFFICE DEPOT 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 OFFICE DEPOT will offset losses from the drop in OFFICE DEPOT's long position.| Compugroup Medical vs. Yuexiu Transport Infrastructure | Compugroup Medical vs. PennantPark Investment | Compugroup Medical vs. SLR Investment Corp | Compugroup Medical vs. SPORTING |
| OFFICE DEPOT vs. TRI CHEMICAL LABORATINC | OFFICE DEPOT vs. PTT Global Chemical | OFFICE DEPOT vs. TIANDE CHEMICAL | OFFICE DEPOT vs. Cleanaway Waste Management |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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