Correlation Between Transportadora and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Transportadora 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 Transportadora and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transportadora de Gas and CompuGroup Medical SE, you can compare the effects of market volatilities on Transportadora 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 Transportadora with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and CompuGroup Medical.
Diversification Opportunities for Transportadora and CompuGroup Medical
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Transportadora and CompuGroup is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Transportadora 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 Transportadora de Gas 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 Transportadora i.e., Transportadora and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Transportadora and CompuGroup Medical
Assuming the 90 days trading horizon Transportadora de Gas is expected to generate 1.4 times more return on investment than CompuGroup Medical. However, Transportadora is 1.4 times more volatile than CompuGroup Medical SE. It trades about 0.06 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about -0.03 per unit of risk. If you would invest 1,040 in Transportadora de Gas on November 19, 2024 and sell it today you would earn a total of 1,460 from holding Transportadora de Gas or generate 140.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transportadora de Gas vs. CompuGroup Medical SE
Performance |
| Timeline |
| Transportadora de Gas |
| CompuGroup Medical |
Transportadora and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transportadora and CompuGroup Medical
The main advantage of trading using opposite Transportadora and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora 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.| Transportadora vs. Performance Food Group | Transportadora vs. LG Display Co | Transportadora vs. CAL MAINE FOODS | Transportadora vs. Playa Hotels Resorts |
| CompuGroup Medical vs. United Natural Foods | CompuGroup Medical vs. Suntory Beverage Food | CompuGroup Medical vs. Chesapeake Utilities | CompuGroup Medical vs. UNITED UTILITIES GR |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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