Correlation Between CompuGroup Medical and Phreesia
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Phreesia 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 Phreesia 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 Phreesia, you can compare the effects of market volatilities on CompuGroup Medical and Phreesia 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 Phreesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Phreesia.
Diversification Opportunities for CompuGroup Medical and Phreesia
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CompuGroup and Phreesia is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Phreesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phreesia 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 Phreesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phreesia has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Phreesia go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Phreesia
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to generate 0.47 times more return on investment than Phreesia. However, CompuGroup Medical SE is 2.15 times less risky than Phreesia. It trades about -0.03 of its potential returns per unit of risk. Phreesia is currently generating about -0.28 per unit of risk. If you would invest 2,282 in CompuGroup Medical SE on December 8, 2024 and sell it today you would lose (22.00) from holding CompuGroup Medical SE or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CompuGroup Medical SE vs. Phreesia
Performance |
| Timeline |
| CompuGroup Medical |
| Phreesia |
CompuGroup Medical and Phreesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Phreesia
The main advantage of trading using opposite CompuGroup Medical and Phreesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Phreesia 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 Phreesia will offset losses from the drop in Phreesia's long position.| CompuGroup Medical vs. MCEWEN MINING INC | CompuGroup Medical vs. Chunghwa Telecom Co | CompuGroup Medical vs. Comba Telecom Systems | CompuGroup Medical vs. Chengdu PUTIAN Telecommunications |
| Phreesia vs. Thai Beverage Public | Phreesia vs. China Foods Limited | Phreesia vs. China Eastern Airlines | Phreesia vs. Moneysupermarket Group PLC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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