Correlation Between Baxter International and Cooper Companies,
Can any of the company-specific risk be diversified away by investing in both Baxter International and Cooper Companies, 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 Baxter International and Cooper Companies, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baxter International and The Cooper Companies,, you can compare the effects of market volatilities on Baxter International and Cooper Companies, 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 Baxter International with a short position of Cooper Companies,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baxter International and Cooper Companies,.
Diversification Opportunities for Baxter International and Cooper Companies,
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baxter and Cooper is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Baxter International and The Cooper Companies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Companies, and Baxter International 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 Baxter International are associated (or correlated) with Cooper Companies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Companies, has no effect on the direction of Baxter International i.e., Baxter International and Cooper Companies, go up and down completely randomly.
Pair Corralation between Baxter International and Cooper Companies,
Considering the 90-day investment horizon Baxter International is expected to under-perform the Cooper Companies,. In addition to that, Baxter International is 1.17 times more volatile than The Cooper Companies,. It trades about -0.02 of its total potential returns per unit of risk. The Cooper Companies, is currently generating about 0.04 per unit of volatility. If you would invest 8,744 in The Cooper Companies, on August 31, 2024 and sell it today you would earn a total of 1,702 from holding The Cooper Companies, or generate 19.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baxter International vs. The Cooper Companies,
Performance |
| Timeline |
| Baxter International |
| Cooper Companies, |
Baxter International and Cooper Companies, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baxter International and Cooper Companies,
The main advantage of trading using opposite Baxter International and Cooper Companies, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baxter International position performs unexpectedly, Cooper Companies, 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 Cooper Companies, will offset losses from the drop in Cooper Companies,'s long position.| Baxter International vs. Embecta Corp | Baxter International vs. West Pharmaceutical Services | Baxter International vs. ResMed Inc | Baxter International vs. The Cooper Companies, |
| Cooper Companies, vs. West Pharmaceutical Services | Cooper Companies, vs. Hologic | Cooper Companies, vs. ICU Medical | Cooper Companies, vs. Haemonetics |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets |