Correlation Between CompuGroup Medical and Blackstone
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Blackstone 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 Blackstone 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 Blackstone Group, you can compare the effects of market volatilities on CompuGroup Medical and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Blackstone.
Diversification Opportunities for CompuGroup Medical and Blackstone
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between CompuGroup and Blackstone is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Blackstone go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Blackstone
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to under-perform the Blackstone. In addition to that, CompuGroup Medical is 1.2 times more volatile than Blackstone Group. It trades about -0.05 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.1 per unit of volatility. If you would invest 7,121 in Blackstone Group on August 29, 2024 and sell it today you would earn a total of 11,159 from holding Blackstone Group or generate 156.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical SE vs. Blackstone Group
Performance |
| Timeline |
| CompuGroup Medical |
| Blackstone Group |
CompuGroup Medical and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Blackstone
The main advantage of trading using opposite CompuGroup Medical and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| CompuGroup Medical vs. OFFICE DEPOT | CompuGroup Medical vs. ULTRA CLEAN HLDGS | CompuGroup Medical vs. SALESFORCE INC CDR | CompuGroup Medical vs. Infrastrutture Wireless Italiane |
| Blackstone vs. JAPAN TOBACCO UNSPADR12 | Blackstone vs. BRIT AMER TOBACCO | Blackstone vs. THAI BEVERAGE | Blackstone vs. LIFEWAY FOODS |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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