Correlation Between CompuGroup Medical and SCANDMEDICAL SOLDK
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK 040, you can compare the effects of market volatilities on CompuGroup Medical and SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and SCANDMEDICAL SOLDK.
Diversification Opportunities for CompuGroup Medical and SCANDMEDICAL SOLDK
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between CompuGroup and SCANDMEDICAL is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and SCANDMEDICAL SOLDK 040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDMEDICAL SOLDK 040 has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and SCANDMEDICAL SOLDK go up and down completely randomly.
Pair Corralation between CompuGroup Medical and SCANDMEDICAL SOLDK
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to generate 0.7 times more return on investment than SCANDMEDICAL SOLDK. However, CompuGroup Medical SE is 1.44 times less risky than SCANDMEDICAL SOLDK. It trades about 0.22 of its potential returns per unit of risk. SCANDMEDICAL SOLDK 040 is currently generating about 0.07 per unit of risk. If you would invest 1,395 in CompuGroup Medical SE on August 30, 2024 and sell it today you would earn a total of 195.00 from holding CompuGroup Medical SE or generate 13.98% 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. SCANDMEDICAL SOLDK 040
Performance |
| Timeline |
| CompuGroup Medical |
| SCANDMEDICAL SOLDK 040 |
CompuGroup Medical and SCANDMEDICAL SOLDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and SCANDMEDICAL SOLDK
The main advantage of trading using opposite CompuGroup Medical and SCANDMEDICAL SOLDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK will offset losses from the drop in SCANDMEDICAL SOLDK's long position.| CompuGroup Medical vs. Superior Plus Corp | CompuGroup Medical vs. NMI Holdings | CompuGroup Medical vs. SIVERS SEMICONDUCTORS AB | CompuGroup Medical vs. Talanx AG |
| SCANDMEDICAL SOLDK vs. Medtronic PLC | SCANDMEDICAL SOLDK vs. Stryker | SCANDMEDICAL SOLDK vs. Boston Scientific | SCANDMEDICAL SOLDK vs. Edwards Lifesciences |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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