Correlation Between Cooper Stnd and Cars
Can any of the company-specific risk be diversified away by investing in both Cooper Stnd and Cars 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 Stnd and Cars into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cooper Stnd and Cars Inc, you can compare the effects of market volatilities on Cooper Stnd and Cars 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 Stnd with a short position of Cars. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Stnd and Cars.
Diversification Opportunities for Cooper Stnd and Cars
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cooper and Cars is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cooper Stnd and Cars Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cars Inc and Cooper Stnd 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 Cooper Stnd are associated (or correlated) with Cars. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cars Inc has no effect on the direction of Cooper Stnd i.e., Cooper Stnd and Cars go up and down completely randomly.
Pair Corralation between Cooper Stnd and Cars
Considering the 90-day investment horizon Cooper Stnd is expected to generate 1.96 times less return on investment than Cars. In addition to that, Cooper Stnd is 1.52 times more volatile than Cars Inc. It trades about 0.01 of its total potential returns per unit of risk. Cars Inc is currently generating about 0.02 per unit of volatility. If you would invest 1,183 in Cars Inc on October 7, 2025 and sell it today you would earn a total of 21.00 from holding Cars Inc or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cooper Stnd vs. Cars Inc
Performance |
| Timeline |
| Cooper Stnd |
| Cars Inc |
Cooper Stnd and Cars Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Stnd and Cars
The main advantage of trading using opposite Cooper Stnd and Cars positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Stnd position performs unexpectedly, Cars 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 Cars will offset losses from the drop in Cars' long position.| Cooper Stnd vs. American Axle Manufacturing | Cooper Stnd vs. Miller Industries | Cooper Stnd vs. Malibu Boats | Cooper Stnd vs. Monro Muffler Brake |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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