Correlation Between Cooper Companies, and InfuSystems Holdings
Can any of the company-specific risk be diversified away by investing in both Cooper Companies, and InfuSystems Holdings 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 InfuSystems Holdings 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 InfuSystems Holdings, you can compare the effects of market volatilities on Cooper Companies, and InfuSystems Holdings 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 InfuSystems Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Companies, and InfuSystems Holdings.
Diversification Opportunities for Cooper Companies, and InfuSystems Holdings
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cooper and InfuSystems is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies, and InfuSystems Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InfuSystems Holdings 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 InfuSystems Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InfuSystems Holdings has no effect on the direction of Cooper Companies, i.e., Cooper Companies, and InfuSystems Holdings go up and down completely randomly.
Pair Corralation between Cooper Companies, and InfuSystems Holdings
Considering the 90-day investment horizon The Cooper Companies, is expected to under-perform the InfuSystems Holdings. But the stock apears to be less risky and, when comparing its historical volatility, The Cooper Companies, is 5.14 times less risky than InfuSystems Holdings. The stock trades about -0.23 of its potential returns per unit of risk. The InfuSystems Holdings is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 684.00 in InfuSystems Holdings on August 24, 2024 and sell it today you would earn a total of 240.00 from holding InfuSystems Holdings or generate 35.09% 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. InfuSystems Holdings
Performance |
| Timeline |
| Cooper Companies, |
| InfuSystems Holdings |
Cooper Companies, and InfuSystems Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Companies, and InfuSystems Holdings
The main advantage of trading using opposite Cooper Companies, and InfuSystems Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Companies, position performs unexpectedly, InfuSystems Holdings 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 InfuSystems Holdings will offset losses from the drop in InfuSystems Holdings' long position.| Cooper Companies, vs. West Pharmaceutical Services | Cooper Companies, vs. Hologic | Cooper Companies, vs. ICU Medical | Cooper Companies, vs. Haemonetics |
| InfuSystems Holdings vs. Electromed | InfuSystems Holdings vs. Issuer Direct Corp | InfuSystems Holdings vs. IRIDEX | InfuSystems Holdings vs. Milestone Scientific |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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