Correlation Between CompuGroup Medical and Apple
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on CompuGroup Medical and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Apple.
Diversification Opportunities for CompuGroup Medical and Apple
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CompuGroup and Apple is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Apple go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Apple
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to generate 3.6 times more return on investment than Apple. However, CompuGroup Medical is 3.6 times more volatile than Apple Inc. It trades about 0.21 of its potential returns per unit of risk. Apple Inc is currently generating about -0.03 per unit of risk. If you would invest 1,591 in CompuGroup Medical SE on October 30, 2024 and sell it today you would earn a total of 745.00 from holding CompuGroup Medical SE or generate 46.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical SE vs. Apple Inc
Performance |
| Timeline |
| CompuGroup Medical |
| Apple Inc |
CompuGroup Medical and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Apple
The main advantage of trading using opposite CompuGroup Medical and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| CompuGroup Medical vs. Veeva Systems | CompuGroup Medical vs. Teladoc | CompuGroup Medical vs. Evolent Health | CompuGroup Medical vs. Compugroup Medical SE |
| Apple vs. MidCap Financial Investment | Apple vs. REINET INVESTMENTS SCA | Apple vs. SEI INVESTMENTS | Apple vs. ECHO INVESTMENT ZY |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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