Correlation Between Mulberry Group and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Mulberry Group 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 Mulberry Group and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mulberry Group PLC and CompuGroup Medical AG, you can compare the effects of market volatilities on Mulberry Group 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 Mulberry Group with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mulberry Group and CompuGroup Medical.
Diversification Opportunities for Mulberry Group and CompuGroup Medical
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mulberry and CompuGroup is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Mulberry Group PLC and CompuGroup Medical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Mulberry Group 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 Mulberry Group PLC 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 Mulberry Group i.e., Mulberry Group and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Mulberry Group and CompuGroup Medical
Assuming the 90 days trading horizon Mulberry Group PLC is expected to under-perform the CompuGroup Medical. In addition to that, Mulberry Group is 1.82 times more volatile than CompuGroup Medical AG. It trades about -0.1 of its total potential returns per unit of risk. CompuGroup Medical AG is currently generating about 0.35 per unit of volatility. If you would invest 1,352 in CompuGroup Medical AG on September 1, 2024 and sell it today you would earn a total of 243.00 from holding CompuGroup Medical AG or generate 17.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mulberry Group PLC vs. CompuGroup Medical AG
Performance |
| Timeline |
| Mulberry Group PLC |
| CompuGroup Medical |
Mulberry Group and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mulberry Group and CompuGroup Medical
The main advantage of trading using opposite Mulberry Group and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mulberry Group 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.| Mulberry Group vs. Auto Trader Group | Mulberry Group vs. Diversified Energy | Mulberry Group vs. Air Products Chemicals | Mulberry Group vs. Lowland Investment Co |
| CompuGroup Medical vs. Uniper SE | CompuGroup Medical vs. Mulberry Group PLC | CompuGroup Medical vs. London Security Plc | CompuGroup Medical vs. Triad Group PLC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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