Correlation Between Compugroup Medical and Anglesey Mining

Can any of the company-specific risk be diversified away by investing in both Compugroup Medical and Anglesey Mining 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 Anglesey Mining 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 Anglesey Mining plc, you can compare the effects of market volatilities on Compugroup Medical and Anglesey Mining 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 Anglesey Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugroup Medical and Anglesey Mining.

Diversification Opportunities for Compugroup Medical and Anglesey Mining

-0.24

Correlation Coefficient

Compugroup Medical  Anglesey Mining

Very good diversification

The 3 months correlation between Compugroup and Anglesey is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Compugroup Medical SE and Anglesey Mining plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglesey Mining plc 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 Anglesey Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglesey Mining plc has no effect on the direction of Compugroup Medical i.e., Compugroup Medical and Anglesey Mining go up and down completely randomly.

Pair Corralation between Compugroup Medical and Anglesey Mining

Assuming the 90 days horizon Compugroup Medical is expected to generate 94.5 times less return on investment than Anglesey Mining. But when comparing it to its historical volatility, Compugroup Medical SE is 145.27 times less risky than Anglesey Mining. It trades about 0.17 of its potential returns per unit of risk. Anglesey Mining plc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  0.30  in Anglesey Mining plc on April 21, 2025 and sell it today you would lose (0.25) from holding Anglesey Mining plc or give up 83.33% of portfolio value over 90 days.

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

Compugroup Medical SE  vs.  Anglesey Mining plc

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.

Anglesey Mining plc

Risk-Adjusted Performance

OK

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

Pair Trading with Compugroup Medical and Anglesey Mining

The main advantage of trading using opposite Compugroup Medical and Anglesey Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugroup Medical position performs unexpectedly, Anglesey Mining 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 Anglesey Mining will offset losses from the drop in Anglesey Mining's long position.

The idea behind Compugroup Medical SE and Anglesey Mining plc 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.