Correlation Between Coloplast A/S and Vale SA
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By analyzing existing cross correlation between Coloplast AS and Vale SA, you can compare the effects of market volatilities on Coloplast A/S and Vale SA 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 A/S with a short position of Vale SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloplast A/S and Vale SA.
Diversification Opportunities for Coloplast A/S and Vale SA
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Coloplast and Vale is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Coloplast AS and Vale SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vale SA and Coloplast A/S 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 Vale SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vale SA has no effect on the direction of Coloplast A/S i.e., Coloplast A/S and Vale SA go up and down completely randomly.
Pair Corralation between Coloplast A/S and Vale SA
Assuming the 90 days trading horizon Coloplast AS is expected to under-perform the Vale SA. In addition to that, Coloplast A/S is 1.2 times more volatile than Vale SA. It trades about -0.06 of its total potential returns per unit of risk. Vale SA is currently generating about 0.15 per unit of volatility. If you would invest 847.00 in Vale SA on July 8, 2025 and sell it today you would earn a total of 105.00 from holding Vale SA or generate 12.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coloplast AS vs. Vale SA
Performance |
| Timeline |
| Coloplast A/S |
| Vale SA |
Coloplast A/S and Vale SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloplast A/S and Vale SA
The main advantage of trading using opposite Coloplast A/S and Vale SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloplast A/S position performs unexpectedly, Vale SA 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 Vale SA will offset losses from the drop in Vale SA's long position.| Coloplast A/S vs. HYATT HOTELS A | Coloplast A/S vs. MIRAMAR HOTEL INV | Coloplast A/S vs. Highlight Communications AG | Coloplast A/S vs. China Yongda Automobiles |
| Vale SA vs. Applied Materials | Vale SA vs. Rayonier Advanced Materials | Vale SA vs. WillScot Mobile Mini | Vale SA vs. Compagnie Plastic Omnium |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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