Correlation Between CompuGroup Medical and PKSHA TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC, you can compare the effects of market volatilities on CompuGroup Medical and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and PKSHA TECHNOLOGY.
Diversification Opportunities for CompuGroup Medical and PKSHA TECHNOLOGY
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CompuGroup and PKSHA is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and PKSHA TECHNOLOGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKSHA TECHNOLOGY INC 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 PKSHA TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKSHA TECHNOLOGY INC has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and PKSHA TECHNOLOGY go up and down completely randomly.
Pair Corralation between CompuGroup Medical and PKSHA TECHNOLOGY
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to generate 0.81 times more return on investment than PKSHA TECHNOLOGY. However, CompuGroup Medical SE is 1.23 times less risky than PKSHA TECHNOLOGY. It trades about 0.24 of its potential returns per unit of risk. PKSHA TECHNOLOGY INC is currently generating about 0.15 per unit of risk. If you would invest 1,382 in CompuGroup Medical SE on August 31, 2024 and sell it today you would earn a total of 208.00 from holding CompuGroup Medical SE or generate 15.05% 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. PKSHA TECHNOLOGY INC
Performance |
| Timeline |
| CompuGroup Medical |
| PKSHA TECHNOLOGY INC |
CompuGroup Medical and PKSHA TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and PKSHA TECHNOLOGY
The main advantage of trading using opposite CompuGroup Medical and PKSHA TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY will offset losses from the drop in PKSHA TECHNOLOGY's long position.| CompuGroup Medical vs. Compugroup Medical SE | CompuGroup Medical vs. Superior Plus Corp | CompuGroup Medical vs. NMI Holdings | CompuGroup Medical vs. Origin Agritech |
| PKSHA TECHNOLOGY vs. Microsoft | PKSHA TECHNOLOGY vs. VeriSign | PKSHA TECHNOLOGY vs. Superior Plus Corp | PKSHA TECHNOLOGY vs. NMI Holdings |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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