Correlation Between CompuGroup Medical and J+J SNACK
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and J+J SNACK 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 J+J SNACK 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 JJ SNACK FOODS, you can compare the effects of market volatilities on CompuGroup Medical and J+J SNACK 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 J+J SNACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and J+J SNACK.
Diversification Opportunities for CompuGroup Medical and J+J SNACK
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CompuGroup and J+J is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and JJ SNACK FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJ SNACK FOODS 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 J+J SNACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJ SNACK FOODS has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and J+J SNACK go up and down completely randomly.
Pair Corralation between CompuGroup Medical and J+J SNACK
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to generate 15.0 times more return on investment than J+J SNACK. However, CompuGroup Medical is 15.0 times more volatile than JJ SNACK FOODS. It trades about 0.27 of its potential returns per unit of risk. JJ SNACK FOODS is currently generating about 0.05 per unit of risk. If you would invest 1,498 in CompuGroup Medical SE on September 24, 2024 and sell it today you would earn a total of 676.00 from holding CompuGroup Medical SE or generate 45.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical SE vs. JJ SNACK FOODS
Performance |
| Timeline |
| CompuGroup Medical |
| JJ SNACK FOODS |
CompuGroup Medical and J+J SNACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and J+J SNACK
The main advantage of trading using opposite CompuGroup Medical and J+J SNACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, J+J SNACK 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 J+J SNACK will offset losses from the drop in J+J SNACK's long position.| CompuGroup Medical vs. Veeva Systems | CompuGroup Medical vs. 10X GENOMICS DL | CompuGroup Medical vs. Healthequity | CompuGroup Medical vs. Teladoc |
| J+J SNACK vs. Mowi ASA | J+J SNACK vs. LEROY SEAFOOD GRUNSPADR | J+J SNACK vs. Lery Seafood Group | J+J SNACK vs. Nisshin Seifun Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |