Correlation Between Cooper Companies, and BioLife Solutions

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

Diversification Opportunities for Cooper Companies, and BioLife Solutions

0.62

Correlation Coefficient

Cooper Companies,  BioLife Solutions

Poor diversification

The 3 months correlation between Cooper and BioLife is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies, and BioLife Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLife Solutions 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 BioLife Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLife Solutions has no effect on the direction of Cooper Companies, i.e., Cooper Companies, and BioLife Solutions go up and down completely randomly.

Pair Corralation between Cooper Companies, and BioLife Solutions

Considering the 90-day investment horizon The Cooper Companies, is expected to generate 0.55 times more return on investment than BioLife Solutions. However, The Cooper Companies, is 1.83 times less risky than BioLife Solutions. It trades about -0.04 of its potential returns per unit of risk. BioLife Solutions is currently generating about -0.05 per unit of risk. If you would invest  8,869  in The Cooper Companies, on February 20, 2025 and sell it today you would lose (719.00) from holding The Cooper Companies, or give up 8.11% of portfolio value over 90 days.

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

The Cooper Companies,  vs.  BioLife Solutions

Cooper Companies,

Risk-Adjusted Performance

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 latest uncertain performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

BioLife Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioLife Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in June 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Cooper Companies, and BioLife Solutions

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

The idea behind The Cooper Companies, and BioLife Solutions 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.