Correlation Between CompuGroup Medical and T MOBILE
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and T MOBILE 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 T MOBILE 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 T MOBILE INCDL 00001, you can compare the effects of market volatilities on CompuGroup Medical and T MOBILE 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 T MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and T MOBILE.
Diversification Opportunities for CompuGroup Medical and T MOBILE
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CompuGroup and TM5 is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and T MOBILE INCDL 00001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T MOBILE INCDL 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 T MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T MOBILE INCDL has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and T MOBILE go up and down completely randomly.
Pair Corralation between CompuGroup Medical and T MOBILE
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to generate 0.21 times more return on investment than T MOBILE. However, CompuGroup Medical SE is 4.77 times less risky than T MOBILE. It trades about 0.1 of its potential returns per unit of risk. T MOBILE INCDL 00001 is currently generating about -0.2 per unit of risk. If you would invest 2,186 in CompuGroup Medical SE on October 12, 2024 and sell it today you would earn a total of 14.00 from holding CompuGroup Medical SE or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CompuGroup Medical SE vs. T MOBILE INCDL 00001
Performance |
| Timeline |
| CompuGroup Medical |
| T MOBILE INCDL |
CompuGroup Medical and T MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and T MOBILE
The main advantage of trading using opposite CompuGroup Medical and T MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, T MOBILE 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 T MOBILE will offset losses from the drop in T MOBILE's long position.| CompuGroup Medical vs. FARM 51 GROUP | CompuGroup Medical vs. TITAN MACHINERY | CompuGroup Medical vs. Daito Trust Construction | CompuGroup Medical vs. MAVEN WIRELESS SWEDEN |
| T MOBILE vs. IMAGIN MEDICAL INC | T MOBILE vs. PLAYMATES TOYS | T MOBILE vs. CompuGroup Medical SE | T MOBILE vs. ANTA SPORTS PRODUCT |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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