Correlation Between Cnova NV and Wayfair
Can any of the company-specific risk be diversified away by investing in both Cnova NV and Wayfair 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 Wayfair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cnova NV and Wayfair, you can compare the effects of market volatilities on Cnova NV and Wayfair 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 Wayfair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cnova NV and Wayfair.
Diversification Opportunities for Cnova NV and Wayfair
Pay attention - limited upside
The 3 months correlation between Cnova and Wayfair is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cnova NV and Wayfair in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wayfair 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 Wayfair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wayfair has no effect on the direction of Cnova NV i.e., Cnova NV and Wayfair go up and down completely randomly.
Pair Corralation between Cnova NV and Wayfair
If you would invest 4,272 in Wayfair on September 5, 2024 and sell it today you would earn a total of 606.00 from holding Wayfair or generate 14.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 1.56% |
Values | Daily Returns |
Cnova NV vs. Wayfair
Performance |
Timeline |
Cnova NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Wayfair |
Cnova NV and Wayfair Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cnova NV and Wayfair
The main advantage of trading using opposite Cnova NV and Wayfair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cnova NV position performs unexpectedly, Wayfair 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 Wayfair will offset losses from the drop in Wayfair'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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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