Correlation Between Cooper Companies, and AtriCure
Can any of the company-specific risk be diversified away by investing in both Cooper Companies, and AtriCure 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 AtriCure 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 AtriCure, you can compare the effects of market volatilities on Cooper Companies, and AtriCure 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 AtriCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Companies, and AtriCure.
Diversification Opportunities for Cooper Companies, and AtriCure
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cooper and AtriCure is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies, and AtriCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AtriCure 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 AtriCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AtriCure has no effect on the direction of Cooper Companies, i.e., Cooper Companies, and AtriCure go up and down completely randomly.
Pair Corralation between Cooper Companies, and AtriCure
Considering the 90-day investment horizon The Cooper Companies, is expected to generate 1.56 times more return on investment than AtriCure. However, Cooper Companies, is 1.56 times more volatile than AtriCure. It trades about 0.28 of its potential returns per unit of risk. AtriCure is currently generating about 0.3 per unit of risk. If you would invest 9,454 in The Cooper Companies, on June 29, 2024 and sell it today you would earn a total of 1,500 from holding The Cooper Companies, or generate 15.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
The Cooper Companies, vs. AtriCure
Performance |
Timeline |
Cooper Companies, |
AtriCure |
Cooper Companies, and AtriCure Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cooper Companies, and AtriCure
The main advantage of trading using opposite Cooper Companies, and AtriCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Companies, position performs unexpectedly, AtriCure 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 AtriCure will offset losses from the drop in AtriCure's long position.Cooper Companies, vs. Teleflex Incorporated | Cooper Companies, vs. Aeye Inc | Cooper Companies, vs. T Rowe Price | Cooper Companies, vs. Malaga Financial |
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
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Transaction History View history of all your transactions and understand their impact on performance |