Correlation Between Cooper Stnd and SES AI
Can any of the company-specific risk be diversified away by investing in both Cooper Stnd and SES AI 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 Stnd and SES AI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cooper Stnd and SES AI Corp, you can compare the effects of market volatilities on Cooper Stnd and SES AI 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 Stnd with a short position of SES AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Stnd and SES AI.
Diversification Opportunities for Cooper Stnd and SES AI
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cooper and SES is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cooper Stnd and SES AI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SES AI Corp and Cooper Stnd 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 Cooper Stnd are associated (or correlated) with SES AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SES AI Corp has no effect on the direction of Cooper Stnd i.e., Cooper Stnd and SES AI go up and down completely randomly.
Pair Corralation between Cooper Stnd and SES AI
Considering the 90-day investment horizon Cooper Stnd is expected to generate 0.63 times more return on investment than SES AI. However, Cooper Stnd is 1.58 times less risky than SES AI. It trades about 0.03 of its potential returns per unit of risk. SES AI Corp is currently generating about -0.16 per unit of risk. If you would invest 1,305 in Cooper Stnd on August 24, 2024 and sell it today you would earn a total of 103.00 from holding Cooper Stnd or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cooper Stnd vs. SES AI Corp
Performance |
| Timeline |
| Cooper Stnd |
| SES AI Corp |
Cooper Stnd and SES AI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Stnd and SES AI
The main advantage of trading using opposite Cooper Stnd and SES AI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Stnd position performs unexpectedly, SES AI 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 SES AI will offset losses from the drop in SES AI's long position.| Cooper Stnd vs. Dorman Products | Cooper Stnd vs. Monro Muffler Brake | Cooper Stnd vs. Standard Motor Products | Cooper Stnd vs. Stoneridge |
| SES AI vs. Cooper Stnd | SES AI vs. Motorcar Parts of | SES AI vs. American Axle Manufacturing | SES AI vs. Stoneridge |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |