Correlation Between IShares Physical and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both IShares Physical 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 IShares Physical and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Physical Silver and CompuGroup Medical AG, you can compare the effects of market volatilities on IShares Physical 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 IShares Physical with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Physical and CompuGroup Medical.
Diversification Opportunities for IShares Physical and CompuGroup Medical
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and CompuGroup is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding iShares Physical Silver and CompuGroup Medical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and IShares Physical 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 iShares Physical Silver 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 IShares Physical i.e., IShares Physical and CompuGroup Medical go up and down completely randomly.
Pair Corralation between IShares Physical and CompuGroup Medical
Assuming the 90 days trading horizon iShares Physical Silver is expected to under-perform the CompuGroup Medical. But the stock apears to be less risky and, when comparing its historical volatility, iShares Physical Silver is 1.36 times less risky than CompuGroup Medical. The stock trades about -0.12 of its potential returns per unit of risk. The CompuGroup Medical AG is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,358 in CompuGroup Medical AG on September 4, 2024 and sell it today you would earn a total of 191.00 from holding CompuGroup Medical AG or generate 14.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Physical Silver vs. CompuGroup Medical AG
Performance |
| Timeline |
| iShares Physical Silver |
| CompuGroup Medical |
IShares Physical and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Physical and CompuGroup Medical
The main advantage of trading using opposite IShares Physical and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Physical 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.| IShares Physical vs. Invesco Physical Gold | IShares Physical vs. Amundi Physical Gold | IShares Physical vs. Bertrandt AG |
| CompuGroup Medical vs. iShares Physical Silver | CompuGroup Medical vs. Hochschild Mining plc | CompuGroup Medical vs. Cembra Money Bank | CompuGroup Medical vs. Eastinco Mining Exploration |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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