Correlation Between Ping An and CompuGroup Medical

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

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

Diversification Opportunities for Ping An and CompuGroup Medical

0.0

Correlation Coefficient

Ping An  CompuGroup Medical

Pay attention - limited upside

The 3 months correlation between Ping and CompuGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Healthcare and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical and Ping An 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 Ping An Healthcare 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 Ping An i.e., Ping An and CompuGroup Medical go up and down completely randomly.

Pair Corralation between Ping An and CompuGroup Medical

If you would invest  2,242  in CompuGroup Medical SE on April 24, 2025 and sell it today you would earn a total of  24.00  from holding CompuGroup Medical SE or generate 1.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	33.33%
Values	Daily Returns

Ping An Healthcare  vs.  CompuGroup Medical SE

Ping An Healthcare

Risk-Adjusted Performance

OK

Over the last 90 days Ping An Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ping An is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

CompuGroup Medical

Risk-Adjusted Performance

OK

Over the last 90 days CompuGroup Medical SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CompuGroup Medical is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Ping An and CompuGroup Medical

The main advantage of trading using opposite Ping An and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An 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 Ping An Healthcare 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.