Correlation Between Microsoft and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Microsoft 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 Microsoft and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and CompuGroup Medical SE, you can compare the effects of market volatilities on Microsoft 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 Microsoft with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and CompuGroup Medical.
Diversification Opportunities for Microsoft and CompuGroup Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Microsoft and CompuGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Microsoft 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 Microsoft 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 Microsoft i.e., Microsoft and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Microsoft and CompuGroup Medical
If you would invest 40,764 in Microsoft on September 3, 2024 and sell it today you would earn a total of 2,334 from holding Microsoft or generate 5.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Microsoft vs. CompuGroup Medical SE
Performance |
| Timeline |
| Microsoft |
| CompuGroup Medical |
Microsoft and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and CompuGroup Medical
The main advantage of trading using opposite Microsoft and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft 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.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| CompuGroup Medical vs. Artisan Partners Asset | CompuGroup Medical vs. Western Acquisition Ventures | CompuGroup Medical vs. Aldel Financial II | CompuGroup Medical vs. Akanda Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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