Correlation Between Ford and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Ford 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 Ford and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and CompuGroup Medical SE, you can compare the effects of market volatilities on Ford 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 Ford with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and CompuGroup Medical.
Diversification Opportunities for Ford and CompuGroup Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ford and CompuGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Ford 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 Ford Motor 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 Ford i.e., Ford and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Ford and CompuGroup Medical
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.72 times more return on investment than CompuGroup Medical. However, Ford Motor is 1.39 times less risky than CompuGroup Medical. It trades about 0.0 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 1,173 in Ford Motor on September 3, 2024 and sell it today you would lose (60.00) from holding Ford Motor or give up 5.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Ford Motor vs. CompuGroup Medical SE
Performance |
| Timeline |
| Ford Motor |
| CompuGroup Medical |
Ford and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and CompuGroup Medical
The main advantage of trading using opposite Ford and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford 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.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| CompuGroup Medical vs. Artisan Partners Asset | CompuGroup Medical vs. Western Acquisition Ventures | CompuGroup Medical vs. Aldel Financial II | CompuGroup Medical vs. Akanda Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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