Correlation Between CompuGroup Medical and Corporate Office
Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Corporate Office 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 Corporate Office 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 Corporate Office Properties, you can compare the effects of market volatilities on CompuGroup Medical and Corporate Office 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 Corporate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Corporate Office.
Diversification Opportunities for CompuGroup Medical and Corporate Office
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CompuGroup and Corporate is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Corporate Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Office Pro 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 Corporate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Office Pro has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Corporate Office go up and down completely randomly.
Pair Corralation between CompuGroup Medical and Corporate Office
Assuming the 90 days trading horizon CompuGroup Medical SE is expected to under-perform the Corporate Office. In addition to that, CompuGroup Medical is 2.98 times more volatile than Corporate Office Properties. It trades about -0.03 of its total potential returns per unit of risk. Corporate Office Properties is currently generating about 0.12 per unit of volatility. If you would invest 2,169 in Corporate Office Properties on September 12, 2024 and sell it today you would earn a total of 911.00 from holding Corporate Office Properties or generate 42.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
CompuGroup Medical SE vs. Corporate Office Properties
Performance |
| Timeline |
| CompuGroup Medical |
| Corporate Office Pro |
CompuGroup Medical and Corporate Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CompuGroup Medical and Corporate Office
The main advantage of trading using opposite CompuGroup Medical and Corporate Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, Corporate Office 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 Corporate Office will offset losses from the drop in Corporate Office'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 |
| Corporate Office vs. ORIX JREIT INC | Corporate Office vs. Superior Plus Corp | Corporate Office vs. SIVERS SEMICONDUCTORS AB | Corporate Office vs. Norsk Hydro ASA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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