Correlation Between Cnova NV and Boohoo PLC
Can any of the company-specific risk be diversified away by investing in both Cnova NV and Boohoo PLC 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 Cnova NV and Boohoo PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cnova NV and BoohooCom PLC ADR, you can compare the effects of market volatilities on Cnova NV and Boohoo PLC 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 Cnova NV with a short position of Boohoo PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cnova NV and Boohoo PLC.
Diversification Opportunities for Cnova NV and Boohoo PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cnova and Boohoo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cnova NV and BoohooCom PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BoohooCom PLC ADR and Cnova NV 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 Cnova NV are associated (or correlated) with Boohoo PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BoohooCom PLC ADR has no effect on the direction of Cnova NV i.e., Cnova NV and Boohoo PLC go up and down completely randomly.
Pair Corralation between Cnova NV and Boohoo PLC
If you would invest 860.00 in BoohooCom PLC ADR on September 7, 2024 and sell it today you would lose (39.00) from holding BoohooCom PLC ADR or give up 4.53% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.4% |
Values | Daily Returns |
Cnova NV vs. BoohooCom PLC ADR
Performance |
Timeline |
Cnova NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BoohooCom PLC ADR |
Cnova NV and Boohoo PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cnova NV and Boohoo PLC
The main advantage of trading using opposite Cnova NV and Boohoo PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cnova NV position performs unexpectedly, Boohoo PLC 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 Boohoo PLC will offset losses from the drop in Boohoo PLC's long position.Cnova NV vs. ZALANDO SE ADR | Cnova NV vs. Meiwu Technology Co | Cnova NV vs. Alibaba Group Holding | Cnova NV vs. PDD Holdings |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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