Correlation Between Compass Group and St Galler
Can any of the company-specific risk be diversified away by investing in both Compass Group and St Galler 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 Compass Group and St Galler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compass Group PLC and St Galler Kantonalbank, you can compare the effects of market volatilities on Compass Group and St Galler 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 Compass Group with a short position of St Galler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compass Group and St Galler.
Diversification Opportunities for Compass Group and St Galler
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Compass and 0QQZ is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Compass Group PLC and St Galler Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Galler Kantonalbank and Compass Group 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 Compass Group PLC are associated (or correlated) with St Galler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Galler Kantonalbank has no effect on the direction of Compass Group i.e., Compass Group and St Galler go up and down completely randomly.
Pair Corralation between Compass Group and St Galler
If you would invest (100.00) in Compass Group PLC on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Compass Group PLC or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Compass Group PLC vs. St Galler Kantonalbank
Performance |
| Timeline |
| Compass Group PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| St Galler Kantonalbank |
Compass Group and St Galler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compass Group and St Galler
The main advantage of trading using opposite Compass Group and St Galler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compass Group position performs unexpectedly, St Galler 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 St Galler will offset losses from the drop in St Galler's long position.| Compass Group vs. Endeavour Mining Corp | Compass Group vs. Thor Mining PLC | Compass Group vs. Coeur Mining | Compass Group vs. SilverCrest Metals |
| St Galler vs. Uniper SE | St Galler vs. Mulberry Group PLC | St Galler vs. London Security Plc | St Galler vs. Triad Group PLC |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |