Correlation Between Cooper Companies, and CareCloud

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

Diversification Opportunities for Cooper Companies, and CareCloud

0.79

Correlation Coefficient

Cooper Companies,  CareCloud

Poor diversification

The 3 months correlation between Cooper and CareCloud is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies, and CareCloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareCloud 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 CareCloud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareCloud has no effect on the direction of Cooper Companies, i.e., Cooper Companies, and CareCloud go up and down completely randomly.

Pair Corralation between Cooper Companies, and CareCloud

Considering the 90-day investment horizon The Cooper Companies, is expected to generate 0.28 times more return on investment than CareCloud. However, The Cooper Companies, is 3.56 times less risky than CareCloud. It trades about -0.08 of its potential returns per unit of risk. CareCloud is currently generating about -0.17 per unit of risk. If you would invest  9,261  in The Cooper Companies, on December 26, 2024 and sell it today you would lose (951.00) from holding The Cooper Companies, or give up 10.27% 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.  CareCloud

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.

CareCloud

Risk-Adjusted Performance

Very Weak

Over the last 90 days CareCloud 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 essential indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Cooper Companies, and CareCloud

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

The idea behind The Cooper Companies, and CareCloud 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.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..