Correlation Between Western Acquisition and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Western Acquisition 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 Western Acquisition and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Acquisition Ventures and CompuGroup Medical SE, you can compare the effects of market volatilities on Western Acquisition 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 Western Acquisition with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Acquisition and CompuGroup Medical.
Diversification Opportunities for Western Acquisition and CompuGroup Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and CompuGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Acquisition Ventures and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Western Acquisition 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 Western Acquisition Ventures 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 Western Acquisition i.e., Western Acquisition and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Western Acquisition and CompuGroup Medical
If you would invest 1,038 in Western Acquisition Ventures on September 12, 2024 and sell it today you would earn a total of 43.00 from holding Western Acquisition Ventures or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Western Acquisition Ventures vs. CompuGroup Medical SE
Performance |
| Timeline |
| Western Acquisition |
| CompuGroup Medical |
Western Acquisition and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Acquisition and CompuGroup Medical
The main advantage of trading using opposite Western Acquisition and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Acquisition 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.| Western Acquisition vs. HUMANA INC | Western Acquisition vs. Barloworld Ltd ADR | Western Acquisition vs. Morningstar Unconstrained Allocation | Western Acquisition vs. Thrivent High Yield |
| CompuGroup Medical vs. Digi International | CompuGroup Medical vs. BCE Inc | CompuGroup Medical vs. Brenmiller Energy Ltd | CompuGroup Medical vs. Reservoir Media |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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