Correlation Between THARISA NON and CompuGroup Medical

Can any of the company-specific risk be diversified away by investing in both THARISA NON 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 THARISA NON and CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between THARISA NON LIST and CompuGroup Medical SE, you can compare the effects of market volatilities on THARISA NON 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 THARISA NON with a short position of CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of THARISA NON and CompuGroup Medical.

Diversification Opportunities for THARISA NON and CompuGroup Medical

-0.49

Correlation Coefficient

THARISA NON  CompuGroup Medical

Very good diversification

The 3 months correlation between THARISA and CompuGroup is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding THARISA NON LIST and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and THARISA NON 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 THARISA NON LIST 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 THARISA NON i.e., THARISA NON and CompuGroup Medical go up and down completely randomly.

Pair Corralation between THARISA NON and CompuGroup Medical

Assuming the 90 days horizon THARISA NON LIST is expected to under-perform the CompuGroup Medical. In addition to that, THARISA NON is 1.09 times more volatile than CompuGroup Medical SE. It trades about -0.11 of its total potential returns per unit of risk. CompuGroup Medical SE is currently generating about 0.07 per unit of volatility. If you would invest  1,470  in CompuGroup Medical SE on September 3, 2024 and sell it today you would earn a total of  121.00  from holding CompuGroup Medical SE or generate 8.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

THARISA NON LIST  vs.  CompuGroup Medical SE

THARISA NON LIST

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days THARISA NON LIST has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

CompuGroup Medical

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CompuGroup Medical SE are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, CompuGroup Medical may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with THARISA NON and CompuGroup Medical

The main advantage of trading using opposite THARISA NON and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THARISA NON 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.

The idea behind THARISA NON LIST and CompuGroup Medical SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.