Correlation Between Soken Chemical and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Soken Chemical 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 Soken Chemical and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soken Chemical Engineering and CompuGroup Medical SE, you can compare the effects of market volatilities on Soken Chemical 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 Soken Chemical with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soken Chemical and CompuGroup Medical.
Diversification Opportunities for Soken Chemical and CompuGroup Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Soken and CompuGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Soken Chemical Engineering and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Soken Chemical 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 Soken Chemical Engineering 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 Soken Chemical i.e., Soken Chemical and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Soken Chemical and CompuGroup Medical
If you would invest 1,382 in CompuGroup Medical SE on August 31, 2024 and sell it today you would earn a total of 208.00 from holding CompuGroup Medical SE or generate 15.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soken Chemical Engineering vs. CompuGroup Medical SE
Performance |
| Timeline |
| Soken Chemical Engin |
| CompuGroup Medical |
Soken Chemical and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soken Chemical and CompuGroup Medical
The main advantage of trading using opposite Soken Chemical and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soken Chemical 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.| Soken Chemical vs. Playa Hotels Resorts | Soken Chemical vs. Wayside Technology Group | Soken Chemical vs. PLAY2CHILL SA ZY | Soken Chemical vs. Check Point Software |
| CompuGroup Medical vs. Superior Plus Corp | CompuGroup Medical vs. NMI Holdings | CompuGroup Medical vs. Origin Agritech | CompuGroup Medical vs. SIVERS SEMICONDUCTORS AB |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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