Correlation Between Compugroup Medical and OAKRIDGE INTERNATIONAL
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL, you can compare the effects of market volatilities on Compugroup Medical and OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and OAKRIDGE INTERNATIONAL.
Diversification Opportunities for Compugroup Medical and OAKRIDGE INTERNATIONAL
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Compugroup and OAKRIDGE is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and OAKRIDGE INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKRIDGE INTERNATIONAL has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and OAKRIDGE INTERNATIONAL go up and down completely randomly.
Pair Corralation between Compugroup Medical and OAKRIDGE INTERNATIONAL
Assuming the 90 days horizon Compugroup Medical SE is expected to generate 0.95 times more return on investment than OAKRIDGE INTERNATIONAL. However, Compugroup Medical SE is 1.05 times less risky than OAKRIDGE INTERNATIONAL. It trades about 0.26 of its potential returns per unit of risk. OAKRIDGE INTERNATIONAL is currently generating about 0.02 per unit of risk. If you would invest 1,462 in Compugroup Medical SE on September 13, 2024 and sell it today you would earn a total of 702.00 from holding Compugroup Medical SE or generate 48.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. OAKRIDGE INTERNATIONAL
Performance |
| Timeline |
| Compugroup Medical |
| OAKRIDGE INTERNATIONAL |
Compugroup Medical and OAKRIDGE INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and OAKRIDGE INTERNATIONAL
The main advantage of trading using opposite Compugroup Medical and OAKRIDGE INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL will offset losses from the drop in OAKRIDGE INTERNATIONAL's long position.| Compugroup Medical vs. Evolent Health | Compugroup Medical vs. CompuGroup Medical SE | Compugroup Medical vs. Superior Plus Corp | Compugroup Medical vs. NMI Holdings |
| OAKRIDGE INTERNATIONAL vs. Evolent Health | OAKRIDGE INTERNATIONAL vs. CompuGroup Medical SE | OAKRIDGE INTERNATIONAL vs. Compugroup Medical SE | OAKRIDGE INTERNATIONAL vs. Superior Plus Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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