Correlation Between Cooper Companies, and Hologic
Can any of the company-specific risk be diversified away by investing in both Cooper Companies, and Hologic 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 Hologic 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 Hologic, you can compare the effects of market volatilities on Cooper Companies, and Hologic 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 Hologic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Companies, and Hologic.
Diversification Opportunities for Cooper Companies, and Hologic
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cooper and Hologic is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies, and Hologic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hologic 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 Hologic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hologic has no effect on the direction of Cooper Companies, i.e., Cooper Companies, and Hologic go up and down completely randomly.
Pair Corralation between Cooper Companies, and Hologic
Considering the 90-day investment horizon The Cooper Companies, is expected to generate 1.29 times more return on investment than Hologic. However, Cooper Companies, is 1.29 times more volatile than Hologic. It trades about 0.04 of its potential returns per unit of risk. Hologic is currently generating about 0.01 per unit of risk. If you would invest 8,038 in The Cooper Companies, on August 24, 2024 and sell it today you would earn a total of 2,042 from holding The Cooper Companies, or generate 25.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cooper Companies, vs. Hologic
Performance |
| Timeline |
| Cooper Companies, |
| Hologic |
Cooper Companies, and Hologic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Companies, and Hologic
The main advantage of trading using opposite Cooper Companies, and Hologic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Companies, position performs unexpectedly, Hologic 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 Hologic will offset losses from the drop in Hologic's long position.| Cooper Companies, vs. West Pharmaceutical Services | Cooper Companies, vs. Hologic | Cooper Companies, vs. ICU Medical | Cooper Companies, vs. Haemonetics |
| Hologic vs. Haemonetics | Hologic vs. ICU Medical | Hologic vs. Envista Holdings Corp | Hologic vs. The Cooper Companies, |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |