Correlation Between CompuGroup Medical and MagnaChip Semiconductor
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and MagnaChip Semiconductor 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 MagnaChip Semiconductor 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 MagnaChip Semiconductor Corp, you can compare the effects of market volatilities on CompuGroup Medical and MagnaChip Semiconductor 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 MagnaChip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and MagnaChip Semiconductor.
Diversification Opportunities for CompuGroup Medical and MagnaChip Semiconductor
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CompuGroup and MagnaChip is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and MagnaChip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MagnaChip Semiconductor 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 MagnaChip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MagnaChip Semiconductor has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and MagnaChip Semiconductor go up and down completely randomly.
Pair Corralation between CompuGroup Medical and MagnaChip Semiconductor
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to generate 0.57 times more return on investment than MagnaChip Semiconductor. However, CompuGroup Medical SE is 1.75 times less risky than MagnaChip Semiconductor. It trades about 0.29 of its potential returns per unit of risk. MagnaChip Semiconductor Corp is currently generating about -0.19 per unit of risk. If you would invest 2,190 in CompuGroup Medical SE on November 4, 2024 and sell it today you would earn a total of 120.00 from holding CompuGroup Medical SE or generate 5.48% 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. MagnaChip Semiconductor Corp
Performance |
| Timeline |
| CompuGroup Medical |
| MagnaChip Semiconductor |
CompuGroup Medical and MagnaChip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and MagnaChip Semiconductor
The main advantage of trading using opposite CompuGroup Medical and MagnaChip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, MagnaChip Semiconductor 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 MagnaChip Semiconductor will offset losses from the drop in MagnaChip Semiconductor's long position.| CompuGroup Medical vs. Tower One Wireless | CompuGroup Medical vs. Spirent Communications plc | CompuGroup Medical vs. SILVER BULLET DATA | CompuGroup Medical vs. Teradata Corp |
| MagnaChip Semiconductor vs. MHP Hotel AG | MagnaChip Semiconductor vs. HYATT HOTELS A | MagnaChip Semiconductor vs. ECHO INVESTMENT ZY | MagnaChip Semiconductor vs. Sunstone Hotel Investors |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |