Correlation Between Mizuno and Compugroup Medical

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

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

Diversification Opportunities for Mizuno and Compugroup Medical

-0.68

Correlation Coefficient

Mizuno  Compugroup Medical

Excellent diversification

The 3 months correlation between Mizuno and Compugroup is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mizuno and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical and Mizuno 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 Mizuno 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 Mizuno i.e., Mizuno and Compugroup Medical go up and down completely randomly.

Pair Corralation between Mizuno and Compugroup Medical

Assuming the 90 days horizon Mizuno is expected to generate 6.68 times less return on investment than Compugroup Medical. In addition to that, Mizuno is 2.24 times more volatile than Compugroup Medical SE. It trades about 0.01 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	Weak
Accuracy	70.31%
Values	Daily Returns

Mizuno  vs.  Compugroup Medical SE

Mizuno

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mizuno has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Mizuno is not utilizing all of its potentials. The latest 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 Mizuno and Compugroup Medical

The main advantage of trading using opposite Mizuno and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mizuno 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 Mizuno 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.