Correlation Between CompuGroup Medical and Onxeo SA
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Onxeo SA 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 Onxeo SA 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 Onxeo SA, you can compare the effects of market volatilities on CompuGroup Medical and Onxeo SA 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 Onxeo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Onxeo SA.
Diversification Opportunities for CompuGroup Medical and Onxeo SA
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between CompuGroup and Onxeo is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Onxeo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onxeo SA 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 Onxeo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onxeo SA has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Onxeo SA go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Onxeo SA
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to generate 0.54 times more return on investment than Onxeo SA. However, CompuGroup Medical SE is 1.84 times less risky than Onxeo SA. It trades about 0.19 of its potential returns per unit of risk. Onxeo SA is currently generating about 0.04 per unit of risk. If you would invest 1,388 in CompuGroup Medical SE on October 24, 2024 and sell it today you would earn a total of 832.00 from holding CompuGroup Medical SE or generate 59.94% 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. Onxeo SA
Performance |
| Timeline |
| CompuGroup Medical |
| Onxeo SA |
CompuGroup Medical and Onxeo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Onxeo SA
The main advantage of trading using opposite CompuGroup Medical and Onxeo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Onxeo SA 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 Onxeo SA will offset losses from the drop in Onxeo SA's long position.| CompuGroup Medical vs. Evolent Health | CompuGroup Medical vs. Compugroup Medical SE | CompuGroup Medical vs. Superior Plus Corp | CompuGroup Medical vs. Intel |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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