Correlation Between Compugroup Medical and Platinum Group
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and Platinum Group 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 Platinum Group 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 Platinum Group Metals, you can compare the effects of market volatilities on Compugroup Medical and Platinum Group 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 Platinum Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and Platinum Group.
Diversification Opportunities for Compugroup Medical and Platinum Group
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Compugroup and Platinum is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and Platinum Group Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Group Metals 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 Platinum Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Group Metals has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and Platinum Group go up and down completely randomly.
Pair Corralation between Compugroup Medical and Platinum Group
Assuming the 90 days horizon Compugroup Medical SE is expected to under-perform the Platinum Group. But the stock apears to be less risky and, when comparing its historical volatility, Compugroup Medical SE is 1.43 times less risky than Platinum Group. The stock trades about -0.03 of its potential returns per unit of risk. The Platinum Group Metals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 145.00 in Platinum Group Metals on October 9, 2024 and sell it today you would lose (16.00) from holding Platinum Group Metals or give up 11.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Compugroup Medical SE vs. Platinum Group Metals
Performance |
| Timeline |
| Compugroup Medical |
| Platinum Group Metals |
Compugroup Medical and Platinum Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and Platinum Group
The main advantage of trading using opposite Compugroup Medical and Platinum Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, Platinum Group 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 Platinum Group will offset losses from the drop in Platinum Group's long position.| Compugroup Medical vs. KOOL2PLAY SA ZY | Compugroup Medical vs. Dairy Farm International | Compugroup Medical vs. ARISTOCRAT LEISURE | Compugroup Medical vs. Aristocrat Leisure Limited |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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