Correlation Between CompuGroup Medical and ENVVENO MEDICAL

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

By analyzing existing cross correlation between CompuGroup Medical SE and ENVVENO MEDICAL DL 00001, you can compare the effects of market volatilities on CompuGroup Medical and ENVVENO 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 CompuGroup Medical with a short position of ENVVENO MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and ENVVENO MEDICAL.

Diversification Opportunities for CompuGroup Medical and ENVVENO MEDICAL

-0.45

Correlation Coefficient

CompuGroup Medical  ENVVENO MEDICAL

Very good diversification

The 3 months correlation between CompuGroup and ENVVENO is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and ENVVENO MEDICAL DL 00001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENVVENO MEDICAL DL and CompuGroup Medical 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 CompuGroup Medical SE are associated (or correlated) with ENVVENO MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENVVENO MEDICAL DL has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and ENVVENO MEDICAL go up and down completely randomly.

Pair Corralation between CompuGroup Medical and ENVVENO MEDICAL

Assuming the 90 days trading horizon CompuGroup Medical is expected to generate 12.2 times less return on investment than ENVVENO MEDICAL. But when comparing it to its historical volatility, CompuGroup Medical SE is 15.13 times less risky than ENVVENO MEDICAL. It trades about 0.2 of its potential returns per unit of risk. ENVVENO MEDICAL DL 00001 is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  280.00  in ENVVENO MEDICAL DL 00001 on October 11, 2024 and sell it today you would earn a total of  48.00  from holding ENVVENO MEDICAL DL 00001 or generate 17.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CompuGroup Medical SE  vs.  ENVVENO MEDICAL DL 00001

CompuGroup Medical

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CompuGroup Medical SE are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, CompuGroup Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

ENVVENO MEDICAL DL

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ENVVENO MEDICAL DL 00001 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ENVVENO MEDICAL reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CompuGroup Medical and ENVVENO MEDICAL

The main advantage of trading using opposite CompuGroup Medical and ENVVENO MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CompuGroup Medical position performs unexpectedly, ENVVENO 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 ENVVENO MEDICAL will offset losses from the drop in ENVVENO MEDICAL's long position.

The idea behind CompuGroup Medical SE and ENVVENO MEDICAL DL 00001 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 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..