Correlation Between Neinor Homes and Compugroup Medical

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

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

Diversification Opportunities for Neinor Homes and Compugroup Medical

0.66

Correlation Coefficient

Neinor Homes  Compugroup Medical

Poor diversification

The 3 months correlation between Neinor and Compugroup is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Neinor Homes SA and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical and Neinor Homes 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 Neinor Homes SA 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 Neinor Homes i.e., Neinor Homes and Compugroup Medical go up and down completely randomly.

Pair Corralation between Neinor Homes and Compugroup Medical

Assuming the 90 days trading horizon Neinor Homes SA is expected to generate 3.03 times more return on investment than Compugroup Medical. However, Neinor Homes is 3.03 times more volatile than Compugroup Medical SE. It trades about 0.16 of its potential returns per unit of risk. Compugroup Medical SE is currently generating about 0.17 per unit of risk. If you would invest  1,364  in Neinor Homes SA on April 22, 2025 and sell it today you would earn a total of  384.00  from holding Neinor Homes SA or generate 28.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	73.44%
Values	Daily Returns

Neinor Homes SA  vs.  Compugroup Medical SE

Neinor Homes SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Neinor Homes SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Neinor Homes unveiled solid returns over the last few months and may actually be approaching a breakup point.

Compugroup Medical

Risk-Adjusted Performance

Good

Over the last 90 days Compugroup Medical SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, Compugroup Medical may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Neinor Homes and Compugroup Medical

The main advantage of trading using opposite Neinor Homes and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neinor Homes 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 Neinor Homes SA 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.