Correlation Between Integral and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Integral 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 Integral and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Ad Science and CompuGroup Medical SE, you can compare the effects of market volatilities on Integral 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 Integral with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and CompuGroup Medical.
Diversification Opportunities for Integral and CompuGroup Medical
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Integral and CompuGroup is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Integral 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 Integral Ad Science 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 Integral i.e., Integral and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Integral and CompuGroup Medical
Considering the 90-day investment horizon Integral Ad Science is expected to generate 0.87 times more return on investment than CompuGroup Medical. However, Integral Ad Science is 1.15 times less risky than CompuGroup Medical. It trades about -0.02 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about -0.05 per unit of risk. If you would invest 1,531 in Integral Ad Science on September 14, 2024 and sell it today you would lose (468.00) from holding Integral Ad Science or give up 30.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.9% |
| Values | Daily Returns |
Integral Ad Science vs. CompuGroup Medical SE
Performance |
| Timeline |
| Integral Ad Science |
| CompuGroup Medical |
Integral and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and CompuGroup Medical
The main advantage of trading using opposite Integral and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral 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.| Integral vs. Mirriad Advertising plc | Integral vs. INEO Tech Corp | Integral vs. Kidoz Inc | Integral vs. Marchex |
| CompuGroup Medical vs. The Gap, | CompuGroup Medical vs. Sea | CompuGroup Medical vs. NL Industries | CompuGroup Medical vs. Sensient Technologies |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |