Correlation Between Allianz SE and Compugroup Medical

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

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

Diversification Opportunities for Allianz SE and Compugroup Medical

-0.52

Correlation Coefficient

Allianz SE  Compugroup Medical

Excellent diversification

The 3 months correlation between Allianz and Compugroup is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Allianz SE and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical and Allianz SE 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 Allianz SE 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 Allianz SE i.e., Allianz SE and Compugroup Medical go up and down completely randomly.

Pair Corralation between Allianz SE and Compugroup Medical

Assuming the 90 days horizon Allianz SE is expected to generate 71.61 times less return on investment than Compugroup Medical. In addition to that, Allianz SE is 1.16 times more volatile than Compugroup Medical SE. It trades about 0.0 of its total potential returns per unit of risk. Compugroup Medical SE is currently generating about 0.14 per unit of volatility. If you would invest  2,108  in Compugroup Medical SE on April 24, 2025 and sell it today you would earn a total of  122.00  from holding Compugroup Medical SE or generate 5.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	71.43%
Values	Daily Returns

Allianz SE  vs.  Compugroup Medical SE

Allianz SE

Risk-Adjusted Performance

Very Weak

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

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 Allianz SE and Compugroup Medical

The main advantage of trading using opposite Allianz SE and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz SE 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 Allianz SE 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.