Correlation Between Healthcare Integrated and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Healthcare Integrated 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 Healthcare Integrated and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthcare Integrated Technologies and CompuGroup Medical SE, you can compare the effects of market volatilities on Healthcare Integrated 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 Healthcare Integrated with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare Integrated and CompuGroup Medical.
Diversification Opportunities for Healthcare Integrated and CompuGroup Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Healthcare and CompuGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Integrated Technolo and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Healthcare Integrated 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 Healthcare Integrated Technologies 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 Healthcare Integrated i.e., Healthcare Integrated and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Healthcare Integrated and CompuGroup Medical
Given the investment horizon of 90 days Healthcare Integrated Technologies is expected to generate 3.08 times more return on investment than CompuGroup Medical. However, Healthcare Integrated is 3.08 times more volatile than CompuGroup Medical SE. It trades about 0.04 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 13.00 in Healthcare Integrated Technologies on September 1, 2024 and sell it today you would lose (1.00) from holding Healthcare Integrated Technologies or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Healthcare Integrated Technolo vs. CompuGroup Medical SE
Performance |
| Timeline |
| Healthcare Integrated |
| CompuGroup Medical |
Healthcare Integrated and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare Integrated and CompuGroup Medical
The main advantage of trading using opposite Healthcare Integrated and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare Integrated 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.| Healthcare Integrated vs. GE HealthCare Technologies | Healthcare Integrated vs. Veeva Systems Class | Healthcare Integrated vs. Solventum Corp | Healthcare Integrated vs. Doximity |
| CompuGroup Medical vs. Legacy Education | CompuGroup Medical vs. Apple Inc | CompuGroup Medical vs. NVIDIA | CompuGroup Medical vs. Microsoft |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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