Correlation Between CompuGroup Medical and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Samsung Electronics 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 Samsung Electronics 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 Samsung Electronics Co, you can compare the effects of market volatilities on CompuGroup Medical and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Samsung Electronics.
Diversification Opportunities for CompuGroup Medical and Samsung Electronics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CompuGroup and Samsung is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Samsung Electronics go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Samsung Electronics
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to under-perform the Samsung Electronics. In addition to that, CompuGroup Medical is 2.03 times more volatile than Samsung Electronics Co. It trades about -0.03 of its total potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.04 per unit of volatility. If you would invest 99,656 in Samsung Electronics Co on September 14, 2024 and sell it today you would lose (21,856) from holding Samsung Electronics Co or give up 21.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical SE vs. Samsung Electronics Co
Performance |
| Timeline |
| CompuGroup Medical |
| Samsung Electronics |
CompuGroup Medical and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Samsung Electronics
The main advantage of trading using opposite CompuGroup Medical and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| CompuGroup Medical vs. CITY OFFICE REIT | CompuGroup Medical vs. InterContinental Hotels Group | CompuGroup Medical vs. Host Hotels Resorts | CompuGroup Medical vs. MIRAMAR HOTEL INV |
| Samsung Electronics vs. Boyd Gaming | Samsung Electronics vs. Soken Chemical Engineering | Samsung Electronics vs. GAMESTOP | Samsung Electronics vs. CHEMICAL INDUSTRIES |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |