Correlation Between ICU Medical and Cooper Companies,
Can any of the company-specific risk be diversified away by investing in both ICU Medical and Cooper Companies, 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 ICU Medical and Cooper Companies, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Medical and The Cooper Companies,, you can compare the effects of market volatilities on ICU Medical and Cooper Companies, 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 ICU Medical with a short position of Cooper Companies,. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Medical and Cooper Companies,.
Diversification Opportunities for ICU Medical and Cooper Companies,
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICU and Cooper is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ICU Medical and The Cooper Companies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Companies, and ICU Medical 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 ICU Medical are associated (or correlated) with Cooper Companies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Companies, has no effect on the direction of ICU Medical i.e., ICU Medical and Cooper Companies, go up and down completely randomly.
Pair Corralation between ICU Medical and Cooper Companies,
Given the investment horizon of 90 days ICU Medical is expected to generate 1.46 times more return on investment than Cooper Companies,. However, ICU Medical is 1.46 times more volatile than The Cooper Companies,. It trades about -0.07 of its potential returns per unit of risk. The Cooper Companies, is currently generating about -0.17 per unit of risk. If you would invest 17,893 in ICU Medical on October 20, 2024 and sell it today you would lose (1,506) from holding ICU Medical or give up 8.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICU Medical vs. The Cooper Companies,
Performance |
| Timeline |
| ICU Medical |
| Cooper Companies, |
ICU Medical and Cooper Companies, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU Medical and Cooper Companies,
The main advantage of trading using opposite ICU Medical and Cooper Companies, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Medical position performs unexpectedly, Cooper Companies, 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 Cooper Companies, will offset losses from the drop in Cooper Companies,'s long position.| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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