Correlation Between DAX Index and Compugroup Medical
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By analyzing existing cross correlation between DAX Index and Compugroup Medical SE, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Compugroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Compugroup Medical.
Diversification Opportunities for DAX Index and Compugroup Medical
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Compugroup is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Compugroup Medical go up and down completely randomly.
Pair Corralation between DAX Index and Compugroup Medical
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Compugroup Medical. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 3.08 times less risky than Compugroup Medical. The index trades about -0.05 of its potential returns per unit of risk. The Compugroup Medical SE is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,417 in Compugroup Medical SE on August 29, 2024 and sell it today you would earn a total of 87.00 from holding Compugroup Medical SE or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. Compugroup Medical SE
Performance |
| Timeline |
DAX Index and Compugroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Compugroup Medical SE
Pair trading matchups for Compugroup Medical
Pair Trading with DAX Index and Compugroup Medical
The main advantage of trading using opposite DAX Index and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| Compugroup Medical vs. Evolent Health | Compugroup Medical vs. CompuGroup Medical SE | Compugroup Medical vs. Superior Plus Corp | Compugroup Medical vs. NMI Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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