Correlation Between Lion One and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Lion One 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 Lion One and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and CompuGroup Medical SE, you can compare the effects of market volatilities on Lion One 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 Lion One with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and CompuGroup Medical.
Diversification Opportunities for Lion One and CompuGroup Medical
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lion and CompuGroup is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Lion One 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 Lion One Metals 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 Lion One i.e., Lion One and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Lion One and CompuGroup Medical
Assuming the 90 days horizon Lion One Metals is expected to under-perform the CompuGroup Medical. But the otc stock apears to be less risky and, when comparing its historical volatility, Lion One Metals is 2.43 times less risky than CompuGroup Medical. The otc stock trades about -0.26 of its potential returns per unit of risk. The CompuGroup Medical SE is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,449 in CompuGroup Medical SE on September 15, 2024 and sell it today you would earn a total of 861.00 from holding CompuGroup Medical SE or generate 59.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. CompuGroup Medical SE
Performance |
| Timeline |
| Lion One Metals |
| CompuGroup Medical |
Lion One and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and CompuGroup Medical
The main advantage of trading using opposite Lion One and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One 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.| Lion One vs. Advantage Solutions | Lion One vs. Atlas Corp | Lion One vs. PureCycle Technologies | Lion One vs. WM Technology |
| CompuGroup Medical vs. Lion One Metals | CompuGroup Medical vs. Sandstorm Gold Ltd | CompuGroup Medical vs. Cannae Holdings | CompuGroup Medical vs. Dine Brands Global |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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