Correlation Between OneLife Technologies and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both OneLife Technologies 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 OneLife Technologies and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneLife Technologies Corp and CompuGroup Medical SE, you can compare the effects of market volatilities on OneLife Technologies 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 OneLife Technologies with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneLife Technologies and CompuGroup Medical.
Diversification Opportunities for OneLife Technologies and CompuGroup Medical
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OneLife and CompuGroup is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding OneLife Technologies Corp and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and OneLife Technologies 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 OneLife Technologies Corp 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 OneLife Technologies i.e., OneLife Technologies and CompuGroup Medical go up and down completely randomly.
Pair Corralation between OneLife Technologies and CompuGroup Medical
If you would invest 0.00 in OneLife Technologies Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding OneLife Technologies Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneLife Technologies Corp vs. CompuGroup Medical SE
Performance |
| Timeline |
| OneLife Technologies Corp |
| CompuGroup Medical |
OneLife Technologies and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneLife Technologies and CompuGroup Medical
The main advantage of trading using opposite OneLife Technologies and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneLife Technologies 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.| OneLife Technologies vs. Certara | OneLife Technologies vs. HealthStream | OneLife Technologies vs. National Research Corp |
| CompuGroup Medical vs. GE HealthCare Technologies | CompuGroup Medical vs. Veeva Systems Class | CompuGroup Medical vs. Solventum Corp | CompuGroup Medical vs. Doximity |
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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