Correlation Between CompuGroup Medical and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Marie Brizard 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 Marie Brizard 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 Marie Brizard Wine, you can compare the effects of market volatilities on CompuGroup Medical and Marie Brizard 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 Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Marie Brizard.
Diversification Opportunities for CompuGroup Medical and Marie Brizard
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between CompuGroup and Marie is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine 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 Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Marie Brizard go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Marie Brizard
Assuming the 90 days trading horizon CompuGroup Medical is expected to generate 9.22 times less return on investment than Marie Brizard. In addition to that, CompuGroup Medical is 2.05 times more volatile than Marie Brizard Wine. It trades about 0.0 of its total potential returns per unit of risk. Marie Brizard Wine is currently generating about 0.06 per unit of volatility. If you would invest 320.00 in Marie Brizard Wine on October 13, 2024 and sell it today you would earn a total of 58.00 from holding Marie Brizard Wine or generate 18.13% 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. Marie Brizard Wine
Performance |
| Timeline |
| CompuGroup Medical |
| Marie Brizard Wine |
CompuGroup Medical and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Marie Brizard
The main advantage of trading using opposite CompuGroup Medical and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Marie Brizard 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 Marie Brizard will offset losses from the drop in Marie Brizard'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 |
| Marie Brizard vs. PULSION Medical Systems | Marie Brizard vs. MeVis Medical Solutions | Marie Brizard vs. CompuGroup Medical SE | Marie Brizard vs. GungHo Online Entertainment |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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