Correlation Between Fortinet and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Fortinet 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 Fortinet and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortinet and CompuGroup Medical SE, you can compare the effects of market volatilities on Fortinet 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 Fortinet with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and CompuGroup Medical.
Diversification Opportunities for Fortinet and CompuGroup Medical
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fortinet and CompuGroup is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Fortinet 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 Fortinet 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 Fortinet i.e., Fortinet and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Fortinet and CompuGroup Medical
Given the investment horizon of 90 days Fortinet is expected to generate 6.5 times more return on investment than CompuGroup Medical. However, Fortinet is 6.5 times more volatile than CompuGroup Medical SE. It trades about 0.31 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about 0.22 per unit of risk. If you would invest 7,884 in Fortinet on September 4, 2024 and sell it today you would earn a total of 1,648 from holding Fortinet or generate 20.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Fortinet vs. CompuGroup Medical SE
Performance |
| Timeline |
| Fortinet |
| CompuGroup Medical |
Fortinet and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortinet and CompuGroup Medical
The main advantage of trading using opposite Fortinet and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet 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.| Fortinet vs. Palo Alto Networks | Fortinet vs. Uipath Inc | Fortinet vs. Block Inc | Fortinet vs. Adobe Systems Incorporated |
| CompuGroup Medical vs. NH Foods Ltd | CompuGroup Medical vs. Fomento Economico Mexicano | CompuGroup Medical vs. The Coca Cola | CompuGroup Medical vs. Bridgford Foods |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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