Correlation Between CompuGroup Medical and QURATE RETAIL
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and QURATE RETAIL 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 QURATE RETAIL 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 QURATE RETAIL INC, you can compare the effects of market volatilities on CompuGroup Medical and QURATE RETAIL 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 QURATE RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and QURATE RETAIL.
Diversification Opportunities for CompuGroup Medical and QURATE RETAIL
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CompuGroup and QURATE is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and QURATE RETAIL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QURATE RETAIL INC 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 QURATE RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QURATE RETAIL INC has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and QURATE RETAIL go up and down completely randomly.
Pair Corralation between CompuGroup Medical and QURATE RETAIL
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to under-perform the QURATE RETAIL. But the stock apears to be less risky and, when comparing its historical volatility, CompuGroup Medical SE is 1.56 times less risky than QURATE RETAIL. The stock trades about -0.04 of its potential returns per unit of risk. The QURATE RETAIL INC is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 690.00 in QURATE RETAIL INC on September 12, 2024 and sell it today you would lose (348.00) from holding QURATE RETAIL INC or give up 50.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical SE vs. QURATE RETAIL INC
Performance |
| Timeline |
| CompuGroup Medical |
| QURATE RETAIL INC |
CompuGroup Medical and QURATE RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and QURATE RETAIL
The main advantage of trading using opposite CompuGroup Medical and QURATE RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, QURATE RETAIL 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 QURATE RETAIL will offset losses from the drop in QURATE RETAIL's long position.| CompuGroup Medical vs. Evolent Health | CompuGroup Medical vs. Compugroup Medical SE | CompuGroup Medical vs. Superior Plus Corp | CompuGroup Medical vs. NMI Holdings |
| QURATE RETAIL vs. MGIC INVESTMENT | QURATE RETAIL vs. ECHO INVESTMENT ZY | QURATE RETAIL vs. Check Point Software | QURATE RETAIL vs. HK Electric Investments |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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