Correlation Between Compugroup Medical and UNIVERSAL MUSIC
Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and UNIVERSAL MUSIC 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 UNIVERSAL MUSIC 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 UNIVERSAL MUSIC GROUP, you can compare the effects of market volatilities on Compugroup Medical and UNIVERSAL MUSIC 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 UNIVERSAL MUSIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and UNIVERSAL MUSIC.
Diversification Opportunities for Compugroup Medical and UNIVERSAL MUSIC
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Compugroup and UNIVERSAL is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and UNIVERSAL MUSIC GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIVERSAL MUSIC GROUP 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 UNIVERSAL MUSIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIVERSAL MUSIC GROUP has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and UNIVERSAL MUSIC go up and down completely randomly.
Pair Corralation between Compugroup Medical and UNIVERSAL MUSIC
Assuming the 90 days trading horizon Compugroup Medical SE is expected to generate 0.63 times more return on investment than UNIVERSAL MUSIC. However, Compugroup Medical SE is 1.6 times less risky than UNIVERSAL MUSIC. It trades about -0.03 of its potential returns per unit of risk. UNIVERSAL MUSIC GROUP is currently generating about -0.11 per unit of risk. If you would invest 2,415 in Compugroup Medical SE on July 22, 2025 and sell it today you would lose (53.00) from holding Compugroup Medical SE or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugroup Medical SE vs. UNIVERSAL MUSIC GROUP
Performance |
| Timeline |
| Compugroup Medical |
| UNIVERSAL MUSIC GROUP |
Compugroup Medical and UNIVERSAL MUSIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugroup Medical and UNIVERSAL MUSIC
The main advantage of trading using opposite Compugroup Medical and UNIVERSAL MUSIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, UNIVERSAL MUSIC 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 UNIVERSAL MUSIC will offset losses from the drop in UNIVERSAL MUSIC's long position.| Compugroup Medical vs. Sotherly Hotels | Compugroup Medical vs. MIRAMAR HOTEL INV | Compugroup Medical vs. Haier Smart Home | Compugroup Medical vs. BRAEMAR HOTELS RES |
| UNIVERSAL MUSIC vs. ARISTOCRAT LEISURE | UNIVERSAL MUSIC vs. Playtech plc | UNIVERSAL MUSIC vs. ANTA Sports Products | UNIVERSAL MUSIC vs. Take Two Interactive Software |
Check out your portfolio center.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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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