Correlation Between Coupang LLC and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Coupang LLC and CompuGroup Medical 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 Coupang LLC and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and CompuGroup Medical SE, you can compare the effects of market volatilities on Coupang LLC and CompuGroup Medical 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 Coupang LLC with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and CompuGroup Medical.
Diversification Opportunities for Coupang LLC and CompuGroup Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coupang and CompuGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Coupang LLC 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 Coupang LLC are associated (or correlated) with CompuGroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuGroup Medical has no effect on the direction of Coupang LLC i.e., Coupang LLC and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Coupang LLC and CompuGroup Medical
Given the investment horizon of 90 days Coupang LLC is expected to generate 0.63 times more return on investment than CompuGroup Medical. However, Coupang LLC is 1.58 times less risky than CompuGroup Medical. It trades about 0.06 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about -0.09 per unit of risk. If you would invest 2,054 in Coupang LLC on September 15, 2024 and sell it today you would earn a total of 335.00 from holding Coupang LLC or generate 16.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Coupang LLC vs. CompuGroup Medical SE
Performance |
| Timeline |
| Coupang LLC |
| CompuGroup Medical |
Coupang LLC and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and CompuGroup Medical
The main advantage of trading using opposite Coupang LLC and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC position performs unexpectedly, CompuGroup Medical 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 CompuGroup Medical will offset losses from the drop in CompuGroup Medical's long position.| Coupang LLC vs. Twilio Inc | Coupang LLC vs. Getty Images Holdings | Coupang LLC vs. Baidu Inc | Coupang LLC vs. Snap Inc |
| CompuGroup Medical vs. First Ship Lease | CompuGroup Medical vs. Air Lease | CompuGroup Medical vs. ATRenew Inc DRC | CompuGroup Medical vs. Coupang LLC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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