Correlation Between CompuGroup Medical and Boise Cascade
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Boise Cascade 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 Boise Cascade 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 Boise Cascade, you can compare the effects of market volatilities on CompuGroup Medical and Boise Cascade 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 Boise Cascade. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Boise Cascade.
Diversification Opportunities for CompuGroup Medical and Boise Cascade
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CompuGroup and Boise is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Boise Cascade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boise Cascade 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 Boise Cascade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boise Cascade has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Boise Cascade go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Boise Cascade
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to under-perform the Boise Cascade. In addition to that, CompuGroup Medical is 1.21 times more volatile than Boise Cascade. It trades about -0.02 of its total potential returns per unit of risk. Boise Cascade is currently generating about 0.07 per unit of volatility. If you would invest 6,246 in Boise Cascade on September 14, 2024 and sell it today you would earn a total of 7,199 from holding Boise Cascade or generate 115.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical SE vs. Boise Cascade
Performance |
| Timeline |
| CompuGroup Medical |
| Boise Cascade |
CompuGroup Medical and Boise Cascade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Boise Cascade
The main advantage of trading using opposite CompuGroup Medical and Boise Cascade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Boise Cascade 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 Boise Cascade will offset losses from the drop in Boise Cascade's long position.| CompuGroup Medical vs. CITY OFFICE REIT | CompuGroup Medical vs. InterContinental Hotels Group | CompuGroup Medical vs. Host Hotels Resorts | CompuGroup Medical vs. MIRAMAR HOTEL INV |
| Boise Cascade vs. SCANDMEDICAL SOLDK 040 | Boise Cascade vs. CompuGroup Medical SE | Boise Cascade vs. ADRIATIC METALS LS 013355 | Boise Cascade vs. GREENX METALS LTD |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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