Compass Diversified Correlations

CODI-P-A

22.15 0.10 0.45%

The current 90-days correlation between Compass Diversified and Adtalem Global Education is 0.03 (i.e., Significant diversification). The correlation of Compass Diversified is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Compass Diversified Correlation With Market

Very good diversification

The correlation between Compass Diversified Holdings and DJI is -0.22 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Compass Diversified Holdings and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Compass Diversified could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Compass Diversified when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Compass Diversified - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Compass Diversified Holdings to buy it.

Moving together with Compass Preferred Stock

0.63

LILM

Lilium NV

Pair Corr

Moving against Compass Preferred Stock

0.62	TDACU	Translational Development	Pair Corr
0.58	AXAHF	AXA SA	Pair Corr
0.58	VEOEY	Veolia Environnement	Pair Corr
0.56	BLAGF	Blue Lagoon Resources	Pair Corr
0.54	ESE	ESCO Technologies	Pair Corr
0.53	BRK-A	Berkshire Hathaway	Pair Corr
0.49	WINVW	WinVest Acquisition Corp	Pair Corr
0.48	FUTU	Futu Holdings	Pair Corr
0.44	INVUP	Investview Earnings Call This Week	Pair Corr
0.43	INTC	Intel Sell-off Trend	Pair Corr
0.39	GAINN	Gladstone Investment	Pair Corr
0.32	CX	Cemex SAB de Buyout Trend	Pair Corr
0.79	AIAGY	Aurubis AG ADR	Pair Corr
0.68	MGLUY	Magazine Luiza SA	Pair Corr
0.6	SRCGF	Spruce Ridge Resources	Pair Corr
0.6	458140BN9	INTEL PORATION	Pair Corr
0.54	CMRX	Chimerix	Pair Corr
0.53	BRK-B	Berkshire Hathaway	Pair Corr
0.52	573284AX4	MARTIN MARIETTA MATERIALS	Pair Corr
0.49	ANSC	Agriculture Natural	Pair Corr
0.48	AXS	AXIS Capital Holdings	Pair Corr
0.4	AG	First Majestic Silver	Pair Corr
0.37	JEXYY	Jiangsu Expressway	Pair Corr

Related Correlations Analysis

	ATGE	SCHL	UDMY	CAAP	EDU	AL	CRSR	AIQUF
ATGE		-0.57	0.02	0.22	-0.57	-0.05	0.59	0.26	ATGE
SCHL	-0.57		0.19	0.01	0.31	0.33	-0.28	-0.16	SCHL
UDMY	0.02	0.19		-0.46	-0.08	0.33	0.6	0.4	UDMY
CAAP	0.22	0.01	-0.46		0.17	0.29	-0.32	-0.51	CAAP
EDU	-0.57	0.31	-0.08	0.17		0.42	-0.72	-0.7	EDU
AL	-0.05	0.33	0.33	0.29	0.42		-0.09	-0.26	AL
CRSR	0.59	-0.28	0.6	-0.32	-0.72	-0.09		0.77	CRSR
AIQUF	0.26	-0.16	0.4	-0.51	-0.7	-0.26	0.77		AIQUF
	ATGE	SCHL	UDMY	CAAP	EDU	AL	CRSR	AIQUF

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

AIQUF	+ 0.77	CRSR
CRSR	+ 0.6	UDMY
CRSR	+ 0.59	ATGE
AL	+ 0.42	EDU
AIQUF	+ 0.4	UDMY
AL	+ 0.33	SCHL

High negative correlations

CRSR	- 0.72	EDU
AIQUF	- 0.7	EDU
EDU	- 0.57	ATGE
SCHL	- 0.57	ATGE
AIQUF	- 0.51	CAAP
CAAP	- 0.46	UDMY

Risk-Adjusted Indicators

There is a big difference between Compass Preferred Stock performing well and Compass Diversified Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Compass Diversified's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
ATGE	1.87	0.25	0.09	0.15	2.32	(1.87)	4.07	(3.35)	11.82
SCHL	2.72	(0.19)	0.00	(1.71)	0.00	0.00	5.36	(4.23)	21.03
UDMY	2.13	0.19	0.06	0.31	3.02	(2.31)	3.55	(4.73)	40.34
CAAP	1.85	(0.12)	0.00	(0.15)	0.00	0.00	3.61	(4.04)	15.56
EDU	2.44	(0.23)	0.00	0.87	0.00	0.00	4.59	(4.18)	26.00
AL	1.52	0.06	0.02	0.01	2.15	(1.59)	3.36	(4.14)	12.57
CRSR	3.11	0.70	0.19	0.28	2.97	(3.50)	5.62	(5.67)	34.05
AIQUF	1.16	0.22	0.19	(2.00)	1.13	(1.28)	2.81	(2.06)	6.71

Compass Diversified Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Compass Diversified preferred stock to make a market-neutral strategy. Peer analysis of Compass Diversified could also be used in its relative valuation, which is a method of valuing Compass Diversified by comparing valuation metrics with similar companies.

Adtalem Global Education Scholastic Udemy Inc Corporacion America Airports New Oriental Education Air Lease Corsair Gaming LAir Liquide SA American Airlines Group Alcoa Corp Apple Inc Best Buy Co Citigroup SentinelOne CVS Health Corp

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