Correlation Between Eagle Materials and Compugroup Medical

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

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

Diversification Opportunities for Eagle Materials and Compugroup Medical

-0.6

Correlation Coefficient

Eagle Materials  Compugroup Medical

Excellent diversification

The 3 months correlation between Eagle and Compugroup is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Materials and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical and Eagle Materials 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 Eagle Materials 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 Eagle Materials i.e., Eagle Materials and Compugroup Medical go up and down completely randomly.

Pair Corralation between Eagle Materials and Compugroup Medical

Assuming the 90 days horizon Eagle Materials is expected to under-perform the Compugroup Medical. In addition to that, Eagle Materials is 2.89 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 0.17 per unit of volatility. If you would invest  2,085  in Compugroup Medical SE on April 22, 2025 and sell it today you would earn a total of  145.00  from holding Compugroup Medical SE or generate 6.95% return on investment over 90 days.

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

Eagle Materials  vs.  Compugroup Medical SE

Eagle Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eagle Materials has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Eagle Materials 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

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 Eagle Materials and Compugroup Medical

The main advantage of trading using opposite Eagle Materials and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Materials 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 Eagle Materials 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.