Correlation Between OFFICE DEPOT and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT 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 OFFICE DEPOT and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and CompuGroup Medical SE, you can compare the effects of market volatilities on OFFICE DEPOT 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 OFFICE DEPOT with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and CompuGroup Medical.
Diversification Opportunities for OFFICE DEPOT and CompuGroup Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and CompuGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT i.e., OFFICE DEPOT and CompuGroup Medical go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and CompuGroup Medical
If you would invest 1,920 in OFFICE DEPOT on September 1, 2024 and sell it today you would earn a total of 0.00 from holding OFFICE DEPOT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. CompuGroup Medical SE
Performance |
| Timeline |
| OFFICE DEPOT |
| CompuGroup Medical |
OFFICE DEPOT and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and CompuGroup Medical
The main advantage of trading using opposite OFFICE DEPOT and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT 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.| OFFICE DEPOT vs. SIVERS SEMICONDUCTORS AB | OFFICE DEPOT vs. Darden Restaurants | OFFICE DEPOT vs. Reliance Steel Aluminum | OFFICE DEPOT vs. Q2M Managementberatung AG |
| CompuGroup Medical vs. LION ONE METALS | CompuGroup Medical vs. Jacquet Metal Service | CompuGroup Medical vs. ARROW ELECTRONICS | CompuGroup Medical vs. LG Electronics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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