Correlation Between Joint Stock and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Joint Stock 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 Joint Stock and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Joint Stock and CompuGroup Medical SE, you can compare the effects of market volatilities on Joint Stock 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 Joint Stock with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joint Stock and CompuGroup Medical.
Diversification Opportunities for Joint Stock and CompuGroup Medical
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Joint and CompuGroup is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Joint Stock and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Joint Stock 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 Joint Stock 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 Joint Stock i.e., Joint Stock and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Joint Stock and CompuGroup Medical
Given the investment horizon of 90 days Joint Stock is expected to under-perform the CompuGroup Medical. In addition to that, Joint Stock is 1.09 times more volatile than CompuGroup Medical SE. It trades about -0.09 of its total potential returns per unit of risk. CompuGroup Medical SE is currently generating about 0.0 per unit of volatility. If you would invest 2,310 in CompuGroup Medical SE on October 25, 2024 and sell it today you would lose (10.00) from holding CompuGroup Medical SE or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Joint Stock vs. CompuGroup Medical SE
Performance |
| Timeline |
| Joint Stock |
| CompuGroup Medical |
Joint Stock and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Joint Stock and CompuGroup Medical
The main advantage of trading using opposite Joint Stock and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joint Stock 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.| Joint Stock vs. Acumen Pharmaceuticals | Joint Stock vs. Valneva SE ADR | Joint Stock vs. Sellas Life Sciences | Joint Stock vs. Sable Offshore Corp |
| CompuGroup Medical vs. Biglari Holdings | CompuGroup Medical vs. The Cheesecake Factory | CompuGroup Medical vs. BJs Restaurants | CompuGroup Medical vs. One Group Hospitality |
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 CEOs Directory module to screen CEOs from public companies around the world.
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