Correlation Between Cnova NV and Reebonz Holding
Can any of the company-specific risk be diversified away by investing in both Cnova NV and Reebonz 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 Cnova NV and Reebonz Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cnova NV and Reebonz Holding, you can compare the effects of market volatilities on Cnova NV and Reebonz 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 Cnova NV with a short position of Reebonz Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cnova NV and Reebonz Holding.
Diversification Opportunities for Cnova NV and Reebonz Holding
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cnova and Reebonz is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Cnova NV and Reebonz Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reebonz Holding 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 Reebonz Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reebonz Holding has no effect on the direction of Cnova NV i.e., Cnova NV and Reebonz Holding go up and down completely randomly.
Pair Corralation between Cnova NV and Reebonz Holding
If you would invest 0.01 in Reebonz Holding on September 6, 2024 and sell it today you would earn a total of 0.00 from holding Reebonz Holding or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Cnova NV vs. Reebonz Holding
Performance |
Timeline |
Cnova NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Reebonz Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cnova NV and Reebonz Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cnova NV and Reebonz Holding
The main advantage of trading using opposite Cnova NV and Reebonz Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cnova NV position performs unexpectedly, Reebonz 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 Reebonz Holding will offset losses from the drop in Reebonz Holding'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 |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |