Correlation Between Cooper Companies, and Sharps Technology

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

Diversification Opportunities for Cooper Companies, and Sharps Technology

0.43

Correlation Coefficient

Cooper Companies,  Sharps Technology

Very weak diversification

The 3 months correlation between Cooper and Sharps is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies, and Sharps Technology Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharps Technology Warrant 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 Sharps Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharps Technology Warrant has no effect on the direction of Cooper Companies, i.e., Cooper Companies, and Sharps Technology go up and down completely randomly.

Pair Corralation between Cooper Companies, and Sharps Technology

Considering the 90-day investment horizon The Cooper Companies, is expected to under-perform the Sharps Technology. But the stock apears to be less risky and, when comparing its historical volatility, The Cooper Companies, is 67.62 times less risky than Sharps Technology. The stock trades about 0.0 of its potential returns per unit of risk. The Sharps Technology Warrant is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  14.00  in Sharps Technology Warrant on October 8, 2024 and sell it today you would lose (7.40) from holding Sharps Technology Warrant or give up 52.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	76.11%
Values	Daily Returns

The Cooper Companies,  vs.  Sharps Technology Warrant

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 uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Sharps Technology Warrant

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sharps Technology Warrant are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Sharps Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cooper Companies, and Sharps Technology

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

The idea behind The Cooper Companies, and Sharps Technology Warrant 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..