Correlation Between Coloplast and ZINZINO AB

Can any of the company-specific risk be diversified away by investing in both Coloplast and ZINZINO AB 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 Coloplast and ZINZINO AB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Coloplast AS and ZINZINO AB B, you can compare the effects of market volatilities on Coloplast and ZINZINO AB 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 Coloplast with a short position of ZINZINO AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloplast and ZINZINO AB.

Diversification Opportunities for Coloplast and ZINZINO AB

-0.75

Correlation Coefficient

Coloplast  ZINZINO AB

Pay attention - limited upside

The 3 months correlation between Coloplast and ZINZINO is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Coloplast AS and ZINZINO AB B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZINZINO AB B and Coloplast 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 Coloplast AS are associated (or correlated) with ZINZINO AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZINZINO AB B has no effect on the direction of Coloplast i.e., Coloplast and ZINZINO AB go up and down completely randomly.

Pair Corralation between Coloplast and ZINZINO AB

Assuming the 90 days trading horizon Coloplast is expected to generate 224.1 times less return on investment than ZINZINO AB. But when comparing it to its historical volatility, Coloplast AS is 3.63 times less risky than ZINZINO AB. It trades about 0.0 of its potential returns per unit of risk. ZINZINO AB B is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,638  in ZINZINO AB B on May 7, 2025 and sell it today you would earn a total of  632.00  from holding ZINZINO AB B or generate 38.58% return on investment over 90 days.

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

Coloplast AS  vs.  ZINZINO AB B

Coloplast AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Coloplast AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Coloplast is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

ZINZINO AB B

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ZINZINO AB B are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ZINZINO AB reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Coloplast and ZINZINO AB

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

The idea behind Coloplast AS and ZINZINO AB B 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.