Correlation Between Cooper Companies, and ICU Medical
Can any of the company-specific risk be diversified away by investing in both Cooper Companies, and ICU Medical 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 ICU Medical 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 ICU Medical, you can compare the effects of market volatilities on Cooper Companies, and ICU Medical 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 ICU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Companies, and ICU Medical.
Diversification Opportunities for Cooper Companies, and ICU Medical
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cooper and ICU is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies, and ICU Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Medical 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 ICU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Medical has no effect on the direction of Cooper Companies, i.e., Cooper Companies, and ICU Medical go up and down completely randomly.
Pair Corralation between Cooper Companies, and ICU Medical
Considering the 90-day investment horizon The Cooper Companies, is expected to under-perform the ICU Medical. But the stock apears to be less risky and, when comparing its historical volatility, The Cooper Companies, is 1.37 times less risky than ICU Medical. The stock trades about -0.23 of its potential returns per unit of risk. The ICU Medical is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 17,770 in ICU Medical on August 24, 2024 and sell it today you would lose (886.00) from holding ICU Medical or give up 4.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cooper Companies, vs. ICU Medical
Performance |
| Timeline |
| Cooper Companies, |
| ICU Medical |
Cooper Companies, and ICU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Companies, and ICU Medical
The main advantage of trading using opposite Cooper Companies, and ICU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Companies, position performs unexpectedly, ICU Medical 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 ICU Medical will offset losses from the drop in ICU Medical's long position.| Cooper Companies, vs. West Pharmaceutical Services | Cooper Companies, vs. Hologic | Cooper Companies, vs. ICU Medical | Cooper Companies, vs. Haemonetics |
| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |