Correlation Between Deltex Medical and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Deltex Medical 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 Deltex Medical and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deltex Medical Group and CompuGroup Medical AG, you can compare the effects of market volatilities on Deltex Medical 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 Deltex Medical with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deltex Medical and CompuGroup Medical.
Diversification Opportunities for Deltex Medical and CompuGroup Medical
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Deltex and CompuGroup is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Deltex Medical Group and CompuGroup Medical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Deltex 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 Deltex Medical Group 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 Deltex Medical i.e., Deltex Medical and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Deltex Medical and CompuGroup Medical
Assuming the 90 days trading horizon Deltex Medical Group is expected to under-perform the CompuGroup Medical. In addition to that, Deltex Medical is 1.78 times more volatile than CompuGroup Medical AG. It trades about -0.31 of its total potential returns per unit of risk. CompuGroup Medical AG is currently generating about 0.2 per unit of volatility. If you would invest 1,411 in CompuGroup Medical AG on August 30, 2024 and sell it today you would earn a total of 149.00 from holding CompuGroup Medical AG or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deltex Medical Group vs. CompuGroup Medical AG
Performance |
| Timeline |
| Deltex Medical Group |
| CompuGroup Medical |
Deltex Medical and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deltex Medical and CompuGroup Medical
The main advantage of trading using opposite Deltex Medical and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deltex Medical 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.| Deltex Medical vs. Toyota Motor Corp | Deltex Medical vs. SoftBank Group Corp | Deltex Medical vs. OTP Bank Nyrt | Deltex Medical vs. Las Vegas Sands |
| CompuGroup Medical vs. Tungsten West PLC | CompuGroup Medical vs. Argo Group Limited | CompuGroup Medical vs. Hardide PLC | CompuGroup Medical vs. Versarien 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |