Correlation Between CompuGroup Medical and Forsys Metals
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Forsys Metals 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 Forsys Metals 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 Forsys Metals Corp, you can compare the effects of market volatilities on CompuGroup Medical and Forsys Metals 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 Forsys Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Forsys Metals.
Diversification Opportunities for CompuGroup Medical and Forsys Metals
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CompuGroup and Forsys is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Forsys Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forsys Metals Corp 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 Forsys Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forsys Metals Corp has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Forsys Metals go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Forsys Metals
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to under-perform the Forsys Metals. But the stock apears to be less risky and, when comparing its historical volatility, CompuGroup Medical SE is 1.95 times less risky than Forsys Metals. The stock trades about -0.03 of its potential returns per unit of risk. The Forsys Metals Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 33.00 in Forsys Metals Corp on October 27, 2024 and sell it today you would earn a total of 3.00 from holding Forsys Metals Corp or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical SE vs. Forsys Metals Corp
Performance |
| Timeline |
| CompuGroup Medical |
| Forsys Metals Corp |
CompuGroup Medical and Forsys Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Forsys Metals
The main advantage of trading using opposite CompuGroup Medical and Forsys Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Forsys Metals 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 Forsys Metals will offset losses from the drop in Forsys Metals' long position.| CompuGroup Medical vs. Beazer Homes USA | CompuGroup Medical vs. Autohome ADR | CompuGroup Medical vs. AUST AGRICULTURAL | CompuGroup Medical vs. Sterling Construction |
| Forsys Metals vs. USWE SPORTS AB | Forsys Metals vs. MARKET VECTR RETAIL | Forsys Metals vs. Salesforce | Forsys Metals vs. SPORT LISBOA E |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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