Correlation Between CompuGroup Medical and DOCDATA
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and DOCDATA 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 DOCDATA 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 DOCDATA, you can compare the effects of market volatilities on CompuGroup Medical and DOCDATA 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 DOCDATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and DOCDATA.
Diversification Opportunities for CompuGroup Medical and DOCDATA
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CompuGroup and DOCDATA is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and DOCDATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOCDATA 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 DOCDATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOCDATA has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and DOCDATA go up and down completely randomly.
Pair Corralation between CompuGroup Medical and DOCDATA
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to under-perform the DOCDATA. But the stock apears to be less risky and, when comparing its historical volatility, CompuGroup Medical SE is 1.37 times less risky than DOCDATA. The stock trades about -0.07 of its potential returns per unit of risk. The DOCDATA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 56.00 in DOCDATA on September 3, 2024 and sell it today you would lose (13.00) from holding DOCDATA or give up 23.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical SE vs. DOCDATA
Performance |
| Timeline |
| CompuGroup Medical |
| DOCDATA |
CompuGroup Medical and DOCDATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and DOCDATA
The main advantage of trading using opposite CompuGroup Medical and DOCDATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, DOCDATA 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 DOCDATA will offset losses from the drop in DOCDATA's long position.| CompuGroup Medical vs. DOCDATA | CompuGroup Medical vs. DATAGROUP SE | CompuGroup Medical vs. AECOM TECHNOLOGY | CompuGroup Medical vs. Hyrican Informationssysteme Aktiengesellschaft |
| DOCDATA vs. Gaztransport Technigaz SA | DOCDATA vs. COLUMBIA SPORTSWEAR | DOCDATA vs. DICKS Sporting Goods | DOCDATA vs. SPORTING |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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