Correlation Between Intel and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and CompuGroup Medical SE, you can compare the effects of market volatilities on Intel 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 Intel with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and CompuGroup Medical.
Diversification Opportunities for Intel and CompuGroup Medical
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intel and CompuGroup is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Intel and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Intel 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 Intel 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 Intel i.e., Intel and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Intel and CompuGroup Medical
Given the investment horizon of 90 days Intel is expected to generate 6.1 times more return on investment than CompuGroup Medical. However, Intel is 6.1 times more volatile than CompuGroup Medical SE. It trades about 0.11 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 2,252 in Intel on September 4, 2024 and sell it today you would earn a total of 141.00 from holding Intel or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Intel vs. CompuGroup Medical SE
Performance |
| Timeline |
| Intel |
| CompuGroup Medical |
Intel and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and CompuGroup Medical
The main advantage of trading using opposite Intel and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.| Intel vs. NXP Semiconductors NV | Intel vs. Analog Devices | Intel vs. Monolithic Power Systems | Intel vs. ON Semiconductor |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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