Correlation Between CompuGroup Medical and Chalice Mining

Can any of the company-specific risk be diversified away by investing in both CompuGroup Medical and Chalice Mining 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 Chalice Mining 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 Chalice Mining Limited, you can compare the effects of market volatilities on CompuGroup Medical and Chalice Mining 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 Chalice Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CompuGroup Medical and Chalice Mining.

Diversification Opportunities for CompuGroup Medical and Chalice Mining

0.0

Correlation Coefficient

CompuGroup Medical  Chalice Mining

Pay attention - limited upside

The 3 months correlation between CompuGroup and Chalice is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CompuGroup Medical SE and Chalice Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chalice Mining 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 Chalice Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chalice Mining has no effect on the direction of CompuGroup Medical i.e., CompuGroup Medical and Chalice Mining go up and down completely randomly.

Pair Corralation between CompuGroup Medical and Chalice Mining

If you would invest  1,405  in CompuGroup Medical SE on October 4, 2024 and sell it today you would earn a total of  781.00  from holding CompuGroup Medical SE or generate 55.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

CompuGroup Medical SE  vs.  Chalice Mining Limited

CompuGroup Medical

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CompuGroup Medical SE are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, CompuGroup Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Chalice Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chalice Mining Limited 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 February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with CompuGroup Medical and Chalice Mining

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

The idea behind CompuGroup Medical SE and Chalice Mining Limited 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.