Correlation Between Coloplast and Zalando SE
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By analyzing existing cross correlation between Coloplast AS and Zalando SE, you can compare the effects of market volatilities on Coloplast and Zalando SE 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 Coloplast with a short position of Zalando SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloplast and Zalando SE.
Diversification Opportunities for Coloplast and Zalando SE
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Coloplast and Zalando is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Coloplast AS and Zalando SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zalando SE and Coloplast 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 Coloplast AS are associated (or correlated) with Zalando SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zalando SE has no effect on the direction of Coloplast i.e., Coloplast and Zalando SE go up and down completely randomly.
Pair Corralation between Coloplast and Zalando SE
Assuming the 90 days trading horizon Coloplast is expected to generate 2.06 times less return on investment than Zalando SE. But when comparing it to its historical volatility, Coloplast AS is 1.37 times less risky than Zalando SE. It trades about 0.09 of its potential returns per unit of risk. Zalando SE is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,762 in Zalando SE on September 1, 2024 and sell it today you would earn a total of 180.00 from holding Zalando SE or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coloplast AS vs. Zalando SE
Performance |
| Timeline |
| Coloplast AS |
| Zalando SE |
Coloplast and Zalando SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloplast and Zalando SE
The main advantage of trading using opposite Coloplast and Zalando SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloplast position performs unexpectedly, Zalando SE 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 Zalando SE will offset losses from the drop in Zalando SE's long position.| Coloplast vs. Mizuho Financial Group | Coloplast vs. Rogers Communications | Coloplast vs. National Bank Holdings | Coloplast vs. VIRG NATL BANKSH |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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