Correlation Between Ypsomed Holding and Coloplast A/S

Can any of the company-specific risk be diversified away by investing in both Ypsomed Holding and Coloplast A/S 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 Ypsomed Holding and Coloplast A/S into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ypsomed Holding AG and Coloplast AS, you can compare the effects of market volatilities on Ypsomed Holding and Coloplast A/S 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 Ypsomed Holding with a short position of Coloplast A/S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ypsomed Holding and Coloplast A/S.

Diversification Opportunities for Ypsomed Holding and Coloplast A/S

-0.82

Correlation Coefficient

Ypsomed Holding  Coloplast A/S

Pay attention - limited upside

The 3 months correlation between Ypsomed and Coloplast is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ypsomed Holding AG and Coloplast AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coloplast A/S and Ypsomed Holding 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 Ypsomed Holding AG are associated (or correlated) with Coloplast A/S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coloplast A/S has no effect on the direction of Ypsomed Holding i.e., Ypsomed Holding and Coloplast A/S go up and down completely randomly.

Pair Corralation between Ypsomed Holding and Coloplast A/S

Assuming the 90 days trading horizon Ypsomed Holding AG is expected to generate 0.74 times more return on investment than Coloplast A/S. However, Ypsomed Holding AG is 1.35 times less risky than Coloplast A/S. It trades about 0.28 of its potential returns per unit of risk. Coloplast AS is currently generating about -0.12 per unit of risk. If you would invest  32,863  in Ypsomed Holding AG on April 23, 2025 and sell it today you would earn a total of  9,487  from holding Ypsomed Holding AG or generate 28.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

Ypsomed Holding AG  vs.  Coloplast AS

Ypsomed Holding AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ypsomed Holding AG are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Ypsomed Holding showed solid returns over the last few months and may actually be approaching a breakup point.

Coloplast A/S

Risk-Adjusted Performance

Very Weak

Over the last 90 days Coloplast AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Ypsomed Holding and Coloplast A/S

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

The idea behind Ypsomed Holding AG and Coloplast AS 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..