Correlation Between CompuGroup Medical and CREO MEDICAL
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and CREO MEDICAL 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 CREO MEDICAL 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 CREO MEDICAL GRP, you can compare the effects of market volatilities on CompuGroup Medical and CREO MEDICAL 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 CREO MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and CREO MEDICAL.
Diversification Opportunities for CompuGroup Medical and CREO MEDICAL
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CompuGroup and CREO is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and CREO MEDICAL GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREO MEDICAL GRP 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 CREO MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREO MEDICAL GRP has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and CREO MEDICAL go up and down completely randomly.
Pair Corralation between CompuGroup Medical and CREO MEDICAL
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to generate 0.99 times more return on investment than CREO MEDICAL. However, CompuGroup Medical SE is 1.01 times less risky than CREO MEDICAL. It trades about -0.02 of its potential returns per unit of risk. CREO MEDICAL GRP is currently generating about -0.05 per unit of risk. If you would invest 3,034 in CompuGroup Medical SE on October 17, 2024 and sell it today you would lose (860.00) from holding CompuGroup Medical SE or give up 28.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical SE vs. CREO MEDICAL GRP
Performance |
| Timeline |
| CompuGroup Medical |
| CREO MEDICAL GRP |
CompuGroup Medical and CREO MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and CREO MEDICAL
The main advantage of trading using opposite CompuGroup Medical and CREO MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, CREO MEDICAL 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 CREO MEDICAL will offset losses from the drop in CREO MEDICAL's long position.| CompuGroup Medical vs. CITY OFFICE REIT | CompuGroup Medical vs. GALENA MINING LTD | CompuGroup Medical vs. alstria office REIT AG | CompuGroup Medical vs. Endeavour Mining PLC |
| CREO MEDICAL vs. Apple Inc | CREO MEDICAL vs. Apple Inc | CREO MEDICAL vs. Apple Inc | CREO MEDICAL vs. Apple Inc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |