Correlation Between International Business and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both International Business 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 International Business and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and CompuGroup Medical SE, you can compare the effects of market volatilities on International Business 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 International Business with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and CompuGroup Medical.
Diversification Opportunities for International Business and CompuGroup Medical
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and CompuGroup is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and International Business 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 International Business Machines 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 International Business i.e., International Business and CompuGroup Medical go up and down completely randomly.
Pair Corralation between International Business and CompuGroup Medical
Considering the 90-day investment horizon International Business Machines is expected to generate 2.69 times more return on investment than CompuGroup Medical. However, International Business is 2.69 times more volatile than CompuGroup Medical SE. It trades about 0.4 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 20,471 in International Business Machines on September 4, 2024 and sell it today you would earn a total of 2,268 from holding International Business Machines or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
International Business Machine vs. CompuGroup Medical SE
Performance |
| Timeline |
| International Business |
| CompuGroup Medical |
International Business and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and CompuGroup Medical
The main advantage of trading using opposite International Business and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business 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.| International Business vs. EPAM Systems | International Business vs. Infosys Ltd ADR | International Business vs. Cognizant Technology Solutions | International Business vs. FiscalNote Holdings |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |