Correlation Between Cooper Companies, and Original Bark
Can any of the company-specific risk be diversified away by investing in both Cooper Companies, and Original Bark 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 Original Bark 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 Original Bark Co, you can compare the effects of market volatilities on Cooper Companies, and Original Bark 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 Original Bark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Companies, and Original Bark.
Diversification Opportunities for Cooper Companies, and Original Bark
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cooper and Original is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies, and Original Bark Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Original Bark 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 Original Bark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Original Bark has no effect on the direction of Cooper Companies, i.e., Cooper Companies, and Original Bark go up and down completely randomly.
Pair Corralation between Cooper Companies, and Original Bark
Considering the 90-day investment horizon Cooper Companies, is expected to generate 5.74 times less return on investment than Original Bark. But when comparing it to its historical volatility, The Cooper Companies, is 2.83 times less risky than Original Bark. It trades about 0.06 of its potential returns per unit of risk. Original Bark Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 77.00 in Original Bark Co on September 2, 2024 and sell it today you would earn a total of 139.00 from holding Original Bark Co or generate 180.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cooper Companies, vs. Original Bark Co
Performance |
| Timeline |
| Cooper Companies, |
| Original Bark |
Cooper Companies, and Original Bark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Companies, and Original Bark
The main advantage of trading using opposite Cooper Companies, and Original Bark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Companies, position performs unexpectedly, Original Bark 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 Original Bark will offset losses from the drop in Original Bark's long position.| Cooper Companies, vs. West Pharmaceutical Services | Cooper Companies, vs. Hologic | Cooper Companies, vs. ICU Medical | Cooper Companies, vs. Haemonetics |
| Original Bark vs. Alcon AG | Original Bark vs. The Cooper Companies, | Original Bark vs. AngioDynamics | Original Bark vs. AptarGroup |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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