Correlation Between Coloplast and Straumann Holding
Can any of the company-specific risk be diversified away by investing in both Coloplast and Straumann Holding 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 Coloplast and Straumann Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coloplast AS and Straumann Holding AG, you can compare the effects of market volatilities on Coloplast and Straumann Holding 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 with a short position of Straumann Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloplast and Straumann Holding.
Diversification Opportunities for Coloplast and Straumann Holding
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coloplast and Straumann is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Coloplast AS and Straumann Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Straumann Holding and Coloplast 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 Straumann Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Straumann Holding has no effect on the direction of Coloplast i.e., Coloplast and Straumann Holding go up and down completely randomly.
Pair Corralation between Coloplast and Straumann Holding
Assuming the 90 days horizon Coloplast AS is expected to under-perform the Straumann Holding. But the pink sheet apears to be less risky and, when comparing its historical volatility, Coloplast AS is 1.02 times less risky than Straumann Holding. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Straumann Holding AG is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,229 in Straumann Holding AG on March 28, 2025 and sell it today you would earn a total of 64.00 from holding Straumann Holding AG or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coloplast AS vs. Straumann Holding AG
Performance |
| Timeline |
| Coloplast AS |
| Straumann Holding |
Coloplast and Straumann Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloplast and Straumann Holding
The main advantage of trading using opposite Coloplast and Straumann Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloplast position performs unexpectedly, Straumann Holding 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 Straumann Holding will offset losses from the drop in Straumann Holding's long position.| Coloplast vs. Sysmex Corp | Coloplast vs. Straumann Holding AG | Coloplast vs. Essilor International SA | Coloplast vs. EssilorLuxottica Socit anonyme |
| Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Coloplast AS | Straumann Holding vs. Essilor International SA | Straumann Holding vs. EssilorLuxottica Socit anonyme |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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