Correlation Between Digi International and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Digi International 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 Digi International and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digi International and CompuGroup Medical SE, you can compare the effects of market volatilities on Digi International 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 Digi International with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digi International and CompuGroup Medical.
Diversification Opportunities for Digi International and CompuGroup Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digi and CompuGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Digi International and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Digi International 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 Digi International 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 Digi International i.e., Digi International and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Digi International and CompuGroup Medical
If you would invest 3,262 in Digi International on September 13, 2024 and sell it today you would earn a total of 126.00 from holding Digi International or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Digi International vs. CompuGroup Medical SE
Performance |
| Timeline |
| Digi International |
| CompuGroup Medical |
Digi International and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digi International and CompuGroup Medical
The main advantage of trading using opposite Digi International and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digi International 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.| Digi International vs. Passage Bio | Digi International vs. Black Diamond Therapeutics | Digi International vs. Alector | Digi International vs. Century Therapeutics |
| CompuGroup Medical vs. Xponential Fitness | CompuGroup Medical vs. Academy Sports Outdoors | CompuGroup Medical vs. Playtech plc | CompuGroup Medical vs. PepsiCo |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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