Correlation Between CompuGroup Medical and Universal Technical
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Universal Technical 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 Universal Technical 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 Universal Technical Institute, you can compare the effects of market volatilities on CompuGroup Medical and Universal Technical 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 Universal Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Universal Technical.
Diversification Opportunities for CompuGroup Medical and Universal Technical
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CompuGroup and Universal is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Universal Technical Institute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Technical 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 Universal Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Technical has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Universal Technical go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Universal Technical
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to under-perform the Universal Technical. In addition to that, CompuGroup Medical is 1.01 times more volatile than Universal Technical Institute. It trades about -0.03 of its total potential returns per unit of risk. Universal Technical Institute is currently generating about 0.1 per unit of volatility. If you would invest 645.00 in Universal Technical Institute on October 9, 2024 and sell it today you would earn a total of 1,815 from holding Universal Technical Institute or generate 281.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
CompuGroup Medical SE vs. Universal Technical Institute
Performance |
| Timeline |
| CompuGroup Medical |
| Universal Technical |
CompuGroup Medical and Universal Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Universal Technical
The main advantage of trading using opposite CompuGroup Medical and Universal Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Universal Technical 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 Universal Technical will offset losses from the drop in Universal Technical's long position.| CompuGroup Medical vs. WisdomTree Investments | CompuGroup Medical vs. DIVERSIFIED ROYALTY | CompuGroup Medical vs. Virtus Investment Partners | CompuGroup Medical vs. Scottish Mortgage Investment |
| Universal Technical vs. Tianjin Capital Environmental | Universal Technical vs. FIRST SAVINGS FINL | Universal Technical vs. Gladstone Investment | Universal Technical vs. CALTAGIRONE EDITORE |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |