Correlation Between CompuGroup Medical and AUSNUTRIA DAIRY
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY, you can compare the effects of market volatilities on CompuGroup Medical and AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and AUSNUTRIA DAIRY.
Diversification Opportunities for CompuGroup Medical and AUSNUTRIA DAIRY
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CompuGroup and AUSNUTRIA is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and AUSNUTRIA DAIRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUSNUTRIA DAIRY has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and AUSNUTRIA DAIRY go up and down completely randomly.
Pair Corralation between CompuGroup Medical and AUSNUTRIA DAIRY
Assuming the 90 days trading horizon CompuGroup Medical is expected to generate 14.91 times less return on investment than AUSNUTRIA DAIRY. But when comparing it to its historical volatility, CompuGroup Medical SE is 9.84 times less risky than AUSNUTRIA DAIRY. It trades about 0.05 of its potential returns per unit of risk. AUSNUTRIA DAIRY is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 22.00 in AUSNUTRIA DAIRY on October 12, 2024 and sell it today you would earn a total of 1.00 from holding AUSNUTRIA DAIRY or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical SE vs. AUSNUTRIA DAIRY
Performance |
| Timeline |
| CompuGroup Medical |
| AUSNUTRIA DAIRY |
CompuGroup Medical and AUSNUTRIA DAIRY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and AUSNUTRIA DAIRY
The main advantage of trading using opposite CompuGroup Medical and AUSNUTRIA DAIRY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY will offset losses from the drop in AUSNUTRIA DAIRY's long position.| CompuGroup Medical vs. HOCHSCHILD MINING | CompuGroup Medical vs. Molson Coors Beverage | CompuGroup Medical vs. The Boston Beer | CompuGroup Medical vs. Media and Games |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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