Correlation Between DATAWALK B and Compugroup Medical

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

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

Diversification Opportunities for DATAWALK B and Compugroup Medical

0.56

Correlation Coefficient

DATAWALK B  Compugroup Medical

Very weak diversification

The 3 months correlation between DATAWALK and Compugroup is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding DATAWALK B H ZY and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical and DATAWALK B 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 DATAWALK B H ZY 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 DATAWALK B i.e., DATAWALK B and Compugroup Medical go up and down completely randomly.

Pair Corralation between DATAWALK B and Compugroup Medical

Assuming the 90 days horizon DATAWALK B H ZY is expected to generate 4.88 times more return on investment than Compugroup Medical. However, DATAWALK B is 4.88 times more volatile than Compugroup Medical SE. It trades about 0.11 of its potential returns per unit of risk. Compugroup Medical SE is currently generating about 0.11 per unit of risk. If you would invest  1,950  in DATAWALK B H ZY on May 16, 2025 and sell it today you would earn a total of  570.00  from holding DATAWALK B H ZY or generate 29.23% return on investment over 90 days.

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

DATAWALK B H ZY  vs.  Compugroup Medical SE

DATAWALK B H

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in DATAWALK B H ZY are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, DATAWALK B reported solid returns over the last few months and may actually be approaching a breakup point.

Compugroup Medical

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Compugroup Medical SE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Compugroup Medical may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with DATAWALK B and Compugroup Medical

The main advantage of trading using opposite DATAWALK B and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATAWALK B 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 DATAWALK B H ZY 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.