Correlation Between Salesforce and Compugroup Medical
Can any of the company-specific risk be diversified away by investing in both Salesforce 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 Salesforce and Compugroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Compugroup Medical SE, you can compare the effects of market volatilities on Salesforce 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 Salesforce with a short position of Compugroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Compugroup Medical.
Diversification Opportunities for Salesforce and Compugroup Medical
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Salesforce and Compugroup is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical and Salesforce 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 Salesforce 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 Salesforce i.e., Salesforce and Compugroup Medical go up and down completely randomly.
Pair Corralation between Salesforce and Compugroup Medical
Considering the 90-day investment horizon Salesforce is expected to generate 1.23 times less return on investment than Compugroup Medical. But when comparing it to its historical volatility, Salesforce is 1.31 times less risky than Compugroup Medical. It trades about 0.28 of its potential returns per unit of risk. Compugroup Medical SE is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,382 in Compugroup Medical SE on September 1, 2024 and sell it today you would earn a total of 237.00 from holding Compugroup Medical SE or generate 17.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Salesforce vs. Compugroup Medical SE
Performance |
| Timeline |
| Salesforce |
| Compugroup Medical |
Salesforce and Compugroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Compugroup Medical
The main advantage of trading using opposite Salesforce and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce 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.| Salesforce vs. Ke Holdings | Salesforce vs. nCino Inc | Salesforce vs. Kingsoft Cloud Holdings | Salesforce vs. Jfrog |
| Compugroup Medical vs. Reliance Steel Aluminum | Compugroup Medical vs. LEGACY IRON ORE | Compugroup Medical vs. THAI BEVERAGE | Compugroup Medical vs. United States Steel |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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