Correlation Between Cooper Companies and Akoya Biosciences

Can any of the company-specific risk be diversified away by investing in both Cooper Companies and Akoya Biosciences 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 Akoya Biosciences 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 Akoya Biosciences, you can compare the effects of market volatilities on Cooper Companies and Akoya Biosciences 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 Akoya Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Companies and Akoya Biosciences.

Diversification Opportunities for Cooper Companies and Akoya Biosciences

0.17

Correlation Coefficient

Cooper Companies  Akoya Biosciences

Average diversification

The 3 months correlation between Cooper and Akoya is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences 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 Akoya Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoya Biosciences has no effect on the direction of Cooper Companies i.e., Cooper Companies and Akoya Biosciences go up and down completely randomly.

Pair Corralation between Cooper Companies and Akoya Biosciences

Considering the 90-day investment horizon The Cooper Companies is expected to generate 0.54 times more return on investment than Akoya Biosciences. However, The Cooper Companies is 1.85 times less risky than Akoya Biosciences. It trades about -0.4 of its potential returns per unit of risk. Akoya Biosciences is currently generating about -0.36 per unit of risk. If you would invest  9,924  in The Cooper Companies on January 31, 2024 and sell it today you would lose (935.00) from holding The Cooper Companies or give up 9.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

The Cooper Companies  vs.  Akoya Biosciences

Cooper Companies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Cooper Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Cooper Companies is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Akoya Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Akoya Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Cooper Companies and Akoya Biosciences

The main advantage of trading using opposite Cooper Companies and Akoya Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Companies position performs unexpectedly, Akoya Biosciences 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 Akoya Biosciences will offset losses from the drop in Akoya Biosciences' long position.

The idea behind The Cooper Companies and Akoya Biosciences pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..