Correlation Between Cooper Companies and Farmacias Benavides

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Can any of the company-specific risk be diversified away by investing in both Cooper Companies and Farmacias Benavides 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 Cooper Companies and Farmacias Benavides into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Cooper Companies and Farmacias Benavides SAB, you can compare the effects of market volatilities on Cooper Companies and Farmacias Benavides 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 Cooper Companies with a short position of Farmacias Benavides. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Companies and Farmacias Benavides.

Diversification Opportunities for Cooper Companies and Farmacias Benavides

CooperFarmaciasDiversified AwayCooperFarmaciasDiversified Away100%
-0.54
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Cooper and Farmacias is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies and Farmacias Benavides SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmacias Benavides SAB and Cooper Companies 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 The Cooper Companies are associated (or correlated) with Farmacias Benavides. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmacias Benavides SAB has no effect on the direction of Cooper Companies i.e., Cooper Companies and Farmacias Benavides go up and down completely randomly.

Pair Corralation between Cooper Companies and Farmacias Benavides

If you would invest  2,300  in Farmacias Benavides SAB on November 30, 2024 and sell it today you would earn a total of  0.00  from holding Farmacias Benavides SAB or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

The Cooper Companies  vs.  Farmacias Benavides SAB

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5051015
JavaScript chart by amCharts 3.21.15COO BEVIDESB
       Timeline  
Cooper Companies 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days The Cooper Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1,9001,9502,0002,0502,1002,150
Farmacias Benavides SAB 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Farmacias Benavides SAB are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, Farmacias Benavides unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb19.52020.52121.52222.523

Cooper Companies and Farmacias Benavides Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.21-2.41-1.6-0.790.00.771.532.33.07 0.050.100.150.200.250.300.35
JavaScript chart by amCharts 3.21.15COO BEVIDESB
       Returns  

Pair Trading with Cooper Companies and Farmacias Benavides

The main advantage of trading using opposite Cooper Companies and Farmacias Benavides positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Companies position performs unexpectedly, Farmacias Benavides 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 Farmacias Benavides will offset losses from the drop in Farmacias Benavides' long position.
The idea behind The Cooper Companies and Farmacias Benavides SAB 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 CEOs Directory module to screen CEOs from public companies around the world.

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