Correlation Between QURATE RETAIL and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both QURATE RETAIL 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 QURATE RETAIL and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QURATE RETAIL INC and CompuGroup Medical SE, you can compare the effects of market volatilities on QURATE RETAIL 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 QURATE RETAIL with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of QURATE RETAIL and CompuGroup Medical.
Diversification Opportunities for QURATE RETAIL and CompuGroup Medical
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between QURATE and CompuGroup is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding QURATE RETAIL INC and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and QURATE RETAIL 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 QURATE RETAIL INC 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 QURATE RETAIL i.e., QURATE RETAIL and CompuGroup Medical go up and down completely randomly.
Pair Corralation between QURATE RETAIL and CompuGroup Medical
Assuming the 90 days trading horizon QURATE RETAIL INC is expected to generate 1.56 times more return on investment than CompuGroup Medical. However, QURATE RETAIL is 1.56 times more volatile than CompuGroup Medical SE. It trades about -0.01 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about -0.04 per unit of risk. If you would invest 690.00 in QURATE RETAIL INC on September 12, 2024 and sell it today you would lose (348.00) from holding QURATE RETAIL INC or give up 50.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QURATE RETAIL INC vs. CompuGroup Medical SE
Performance |
| Timeline |
| QURATE RETAIL INC |
| CompuGroup Medical |
QURATE RETAIL and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QURATE RETAIL and CompuGroup Medical
The main advantage of trading using opposite QURATE RETAIL and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QURATE RETAIL 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.| QURATE RETAIL vs. MGIC INVESTMENT | QURATE RETAIL vs. ECHO INVESTMENT ZY | QURATE RETAIL vs. Check Point Software | QURATE RETAIL vs. HK Electric Investments |
| CompuGroup Medical vs. Evolent Health | CompuGroup Medical vs. Compugroup Medical SE | CompuGroup Medical vs. Superior Plus Corp | CompuGroup Medical vs. NMI Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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