Correlation Between AKA Brands and Cnova NV

Can any of the company-specific risk be diversified away by investing in both AKA Brands and Cnova NV 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 AKA Brands and Cnova NV into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AKA Brands Holding and Cnova NV, you can compare the effects of market volatilities on AKA Brands and Cnova NV 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 AKA Brands with a short position of Cnova NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKA Brands and Cnova NV.

Diversification Opportunities for AKA Brands and Cnova NV

0.0

Correlation Coefficient

AKA Brands  Cnova NV

Pay attention - limited upside

The 3 months correlation between AKA and Cnova is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AKA Brands Holding and Cnova NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cnova NV and AKA Brands 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 AKA Brands Holding are associated (or correlated) with Cnova NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cnova NV has no effect on the direction of AKA Brands i.e., AKA Brands and Cnova NV go up and down completely randomly.

Pair Corralation between AKA Brands and Cnova NV

If you would invest  0.00  in Cnova NV on September 7, 2024 and sell it today you would earn a total of  0.00  from holding Cnova NV or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

AKA Brands Holding  vs.  Cnova NV

AKA Brands Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AKA Brands Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking signals, AKA Brands is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Cnova NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cnova NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Cnova NV is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with AKA Brands and Cnova NV

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

The idea behind AKA Brands Holding and Cnova NV 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.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.