Compass Diversified Correlations

CODI Stock

USD 19.09 0.12 0.62%

The current 90-days correlation between Compass Diversified and Matthews International is 0.29 (i.e., Modest 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

Poor diversification

The correlation between Compass Diversified Holdings and DJI is 0.6 (i.e., Poor 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.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Compass Diversified Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment.

Moving together with Compass Stock

0.73	DHIL	Diamond Hill Investment	Pair Corr
0.74	BX	Blackstone Group	Pair Corr
0.85	LC	LendingClub Corp	Pair Corr
0.66	MC	Moelis	Pair Corr
0.77	RC	Ready Capital Corp	Pair Corr
0.7	WD	Walker Dunlop	Pair Corr
0.89	WT	WisdomTree	Pair Corr
0.9	VRTS	Virtus Investment	Pair Corr

Moving against Compass Stock

0.87	DB	Deutsche Bank AG	Pair Corr
0.84	LX	Lexinfintech Holdings Buyout Trend	Pair Corr
0.81	DX	Dynex Capital	Pair Corr
0.72	LU	Lufax Holding	Pair Corr
0.5	V	Visa Class A	Pair Corr
0.5	PT	Pintec Technology	Pair Corr
0.43	WU	Western Union	Pair Corr
0.4	AB	AllianceBernstein	Pair Corr
0.36	TW	Tradeweb Markets	Pair Corr
0.88	DYCQ	DT Cloud Acquisition	Pair Corr
0.76	EMCGU	Embrace Change Acqui	Pair Corr
0.74	EMCG	Embrace Change Acqui	Pair Corr
0.72	XP	Xp Inc	Pair Corr
0.71	ANSCU	Agriculture Natural	Pair Corr
0.71	GDSTW	Goldenstone Acquisition	Pair Corr
0.7	EZPW	EZCORP Inc Normal Trading	Pair Corr
0.67	DMYY	dMY Squared Technology	Pair Corr
0.62	ANSCW	Agriculture Natural	Pair Corr
0.51	EMCGW	Embrace Change Acqui	Pair Corr
0.49	DOMH	Dominari Holdings Earnings Call This Week	Pair Corr
0.42	GCMGW	GCM Grosvenor	Pair Corr
0.41	EMCGR	Embrace Change Acqui	Pair Corr

Related Correlations Analysis

	MATW	SPLP	VMI	BBU	GFF	TRC	VRTV	MDU	SPLP-PA	CODI-PA
MATW		0.01	-0.05	-0.58	0.41	-0.01	0.0	0.81	-0.78	0.67	MATW
SPLP	0.01		-0.25	0.28	-0.14	-0.28	0.0	0.14	-0.27	-0.2	SPLP
VMI	-0.05	-0.25		0.32	0.33	0.15	0.0	-0.28	0.24	0.27	VMI
BBU	-0.58	0.28	0.32		-0.1	-0.21	0.0	-0.59	0.4	-0.34	BBU
GFF	0.41	-0.14	0.33	-0.1		0.25	0.0	0.09	-0.24	0.36	GFF
TRC	-0.01	-0.28	0.15	-0.21	0.25		0.0	-0.07	0.19	0.12	TRC
VRTV	0.0	0.0	0.0	0.0	0.0	0.0		0.0	0.0	0.0	VRTV
MDU	0.81	0.14	-0.28	-0.59	0.09	-0.07	0.0		-0.75	0.42	MDU
SPLP-PA	-0.78	-0.27	0.24	0.4	-0.24	0.19	0.0	-0.75		-0.31	SPLP-PA
CODI-PA	0.67	-0.2	0.27	-0.34	0.36	0.12	0.0	0.42	-0.31		CODI-PA
	MATW	SPLP	VMI	BBU	GFF	TRC	VRTV	MDU	SPLP-PA	CODI-PA

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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

MDU	+ 0.81	MATW
CODI-PA	+ 0.67	MATW
CODI-PA	+ 0.42	MDU
GFF	+ 0.41	MATW
SPLP-PA	+ 0.4	BBU
CODI-PA	+ 0.36	GFF

High negative correlations

SPLP-PA	- 0.78	MATW
SPLP-PA	- 0.75	MDU
MDU	- 0.59	BBU
BBU	- 0.58	MATW
CODI-PA	- 0.34	BBU
CODI-PA	- 0.31	SPLP-PA

Risk-Adjusted Indicators

There is a big difference between Compass 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
MATW	2.01	(0.21)	0.00	(0.17)	0.00	0.00	2.96	(4.01)	24.43
SPLP	1.52	0.03	0.01	0.10	2.80	(2.13)	2.97	(2.21)	18.57
VMI	1.72	(0.01)	0.00	(0.01)	0.00	0.00	3.26	(3.71)	30.09
BBU	1.71	0.12	0.05	0.09	2.15	(1.83)	3.55	(3.28)	12.93
GFF	1.52	(0.01)	0.00	0.04	0.00	0.00	2.86	(2.48)	12.51
TRC	1.23	0.11	0.07	0.14	1.51	(1.31)	3.10	(2.70)	7.06
VRTV	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MDU	1.11	(0.06)	0.00	(0.08)	0.00	0.00	2.35	(2.17)	8.23
SPLP-PA	0.18	0.02	0.09	0.77	0.17	(0.20)	0.58	(0.33)	1.48
CODI-PA	0.83	0.00	0.00	0.00	0.99	(0.92)	2.03	(1.53)	5.64

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