Correlation Between ULTRA CLEAN and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both ULTRA CLEAN 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 ULTRA CLEAN and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ULTRA CLEAN HLDGS and CompuGroup Medical SE, you can compare the effects of market volatilities on ULTRA CLEAN 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 ULTRA CLEAN with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ULTRA CLEAN and CompuGroup Medical.
Diversification Opportunities for ULTRA CLEAN and CompuGroup Medical
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ULTRA and CompuGroup is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding ULTRA CLEAN HLDGS and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and ULTRA CLEAN 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 ULTRA CLEAN HLDGS 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 ULTRA CLEAN i.e., ULTRA CLEAN and CompuGroup Medical go up and down completely randomly.
Pair Corralation between ULTRA CLEAN and CompuGroup Medical
Assuming the 90 days trading horizon ULTRA CLEAN HLDGS is expected to generate 1.06 times more return on investment than CompuGroup Medical. However, ULTRA CLEAN is 1.06 times more volatile than CompuGroup Medical SE. It trades about 0.01 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about -0.05 per unit of risk. If you would invest 3,443 in ULTRA CLEAN HLDGS on August 29, 2024 and sell it today you would earn a total of 57.00 from holding ULTRA CLEAN HLDGS or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ULTRA CLEAN HLDGS vs. CompuGroup Medical SE
Performance |
| Timeline |
| ULTRA CLEAN HLDGS |
| CompuGroup Medical |
ULTRA CLEAN and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ULTRA CLEAN and CompuGroup Medical
The main advantage of trading using opposite ULTRA CLEAN and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ULTRA CLEAN 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.| ULTRA CLEAN vs. Apple Inc | ULTRA CLEAN vs. Apple Inc | ULTRA CLEAN vs. Superior Plus Corp | ULTRA CLEAN vs. SIVERS SEMICONDUCTORS AB |
| CompuGroup Medical vs. OFFICE DEPOT | CompuGroup Medical vs. ULTRA CLEAN HLDGS | CompuGroup Medical vs. SALESFORCE INC CDR | CompuGroup Medical vs. Infrastrutture Wireless Italiane |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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