Correlation Between Compugroup Medical and Takara Holdings
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and Takara Holdings 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 Takara Holdings 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 Takara Holdings, you can compare the effects of market volatilities on Compugroup Medical and Takara Holdings 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 Takara Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and Takara Holdings.
Diversification Opportunities for Compugroup Medical and Takara Holdings
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Compugroup and Takara is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and Takara Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takara Holdings 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 Takara Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takara Holdings has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and Takara Holdings go up and down completely randomly.
Pair Corralation between Compugroup Medical and Takara Holdings
Assuming the 90 days horizon Compugroup Medical SE is expected to generate 2.35 times more return on investment than Takara Holdings. However, Compugroup Medical is 2.35 times more volatile than Takara Holdings. It trades about 0.23 of its potential returns per unit of risk. Takara Holdings is currently generating about 0.47 per unit of risk. If you would invest 1,370 in Compugroup Medical SE on September 4, 2024 and sell it today you would earn a total of 216.00 from holding Compugroup Medical SE or generate 15.77% 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. Takara Holdings
Performance |
| Timeline |
| Compugroup Medical |
| Takara Holdings |
Compugroup Medical and Takara Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and Takara Holdings
The main advantage of trading using opposite Compugroup Medical and Takara Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, Takara Holdings 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 Takara Holdings will offset losses from the drop in Takara Holdings' long position.| Compugroup Medical vs. 10X GENOMICS DL | Compugroup Medical vs. Teladoc | Compugroup Medical vs. RLX TECH SPADR1 | Compugroup Medical vs. CompuGroup Medical SE |
| Takara Holdings vs. IMAGIN MEDICAL INC | Takara Holdings vs. Compugroup Medical SE | Takara Holdings vs. MEDICAL FACILITIES NEW | Takara Holdings vs. Microbot Medical |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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